exclusive franchise) People have to keep buying it User of technology (hence, its inputs become cheaper with time) Insiders are buying (the reverse is not a bad sign) The company is buying back shares Hot stocks - which everyone is talking about Diworsifying companies whisper stocks - everyone hears the same unrealistic argument Which has few customers - which can cancel the contract and kill the company It has an exciting name P/E ratio = years it will take the stock to earn back the original investment with zero growth Buy stocks with P/E ratio below the industry average of that industry Do not buy stocks with extremely high P/E ratios