Jim said there was only three ways to make money, with high growth, consistent growth or with value stocks. Do your research, find out were your stock lays and buy what you like among these three. An example of each was given.

  • Panera Bread (PNRA) - High growth. They have 1,000 stores right now and they look to go north of 3,000 stores, this means in the next three years there is potential for 24% growth. Jim likes them better than one of his favorites, Starbucks (SBUX).
  • General Mills Inc (GIS) - consistent growth. Go to the supermarket. They throw off cash and still grow consistently. With a lot of products they are solid, they are a rock.
  • Walter Industries Inc (WLT) - Value. 20% growth and it trades at 8 times earnings. This is the parent company of Mueller which makes pipes, and water is “en fuego” right now. WLT makes the best coal out there and the are a proven homebuilder. This is the value play.

You need to know what your after and go for it, these are just three examples of growth so if your stock doesn’t fit a category you probably shouldn’t be in it.