The first rule is not to lose. The second rule is not to forget the first rule.
A further 5 companies are selected from sectors that are in the current (or soon to be expected) economic cycle, such as:
Early Cycle = Automobiles & Parts, General Retailers, Household Goods, Leisure Goods, Life Insurance, Media and Travel & Leisure.
Mid Cycle = Industrial Transportation, Mining, Oil & Gas Producers, Oil Equipment & Services, Real Estate, Software & Computer Services and Technology Hardware & Equipment.
Late Cycle = Banks, Chemicals, Construction & Materials, Electronic & Electrical Engineering, Equity Investment Instruments, Forestry & Paper, General Industrials, General Financial, Industrial Engineering, Industrial Metals and Support Services.
| COMPANY | SECTOR |
|---|---|
| Aviva | Life Insurance |
| Berkeley Group | Household Goods |
| Legal & General | Life Insurance |
| Mercantile Investment Trust | Equity Investment Instruments |
| Royal Dutch Shell B | Oil & Gas Producers |
These shares are generally bought for the short term.