How to choose a suitable company

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The Snegoo® strategy requires its users to comply with the 5 criteria listed below when selecting the companies to invest in. They can be remembered easily:

  1. Look for companies with a long history and with a market value of more than one billion Euros.
  2. The company should pay a share of their profits in the form of a dividend. The taxable dividend paid should be more than 5% p.a.
  3. The shares of the selected company should be traded in a large volume during a trading day – e.g. 1 million shares. This is necessary for the immediate buying and selling of shares (liquidity).
  4. The current share price should have fallen by at least 30% in the course of the last year, ideally as close as possible to the historically lowest price since the company’s shares started to be traded on the stock exchange.
  5. Buy shares of companies operating in multiple sectors (e.g. financials, energy, automotive, etc.).

An example of a suitable company according to the Snegoo® strategy:

This company is suitable for investment according to the Snegoo® strategy. It has a long-term history; its value exceeds €1 billion; the dividend after taxation it pays out is more than 5% p.a.; the volume of shares traded during a trading day is high, and the share price has decreased by more than 30% in the course of the last year.
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