Preface to the 1996 Edition

Since writing the hardback version of Beyond the Zulu Principle there have been a number of important developments.

First and foremost, I am now in possession of powerful additional evidence showing the effectiveness of the investment criteria outlined in this book. The details are set out in the Appendix. I think you will find them very convincing.

Since the publication of the hardback in 1996, I have held two investment classes for beginners; one on 28 September and the other on 17 November 1997. I am unlikely to hold any more, although I will probably continue to speak at seminars like Sharelink’s and those organised by the Financial Mail on Sunday .

The new electronic version of Company REFS (CD REFS) is now available on CD-ROM. This enables subscribers with a computer to obtain all the details of REFS in the Companies Volume and make their own tailor-made searches for interesting shares. Special terms are available for subscribers who want to take both the written and electronic version. For further details contact Company REFS on 020 7324 5414.

I am thinking of writing a regular monthly newsletter. If I do, it would incorporate the following features:

1. Comment on the market as a whole.
2. A strongly argued recommendation (when opportunities could be identified) in each of the three main categories: one from the top 350 companies, one from the SmallCap index and one from the Fledgling index or from AIM.
3. A carefully tailored search each month of the vast Hemmington Scott database. The introduction of CD REFS gives me great flexibility to make demanding searches using my own highly selective criteria. Each month I would conduct a search of this nature, explain the criteria I adopted, and review the findings in detail.
4. Points of interest. These would include book reviews, guest contributions from investors of note and thought-provoking items I have noticed in the world press.
5. Monthly updates. Once companies had been recommended, their progress and newsflow would be carefully monitored and reported on so investors became quickly aware of any changes in the ‘story’.
6. Monthly reviews of companies affected by key active investment measures. These would include relative strength, changes in brokers’ consensus forecasts or directors’ dealings.
7. Readers’ questions together with my answers. I would only feature letters when they asked questions that would be of real interest to all readers.

If you are interested and want to know if I have proceeded with the idea of a newsletter, I suggest that you contact Hemmington Scott.

I have recently started an Internet site which explains my investment approach, offers current recommended reading, gives details of REFS and my masterclasses and provides the answers to most frequently asked questions. If you are interested I suggest that you pay the site a visit. The website address is www.global-investor.com/slater and the service is, of course, free.

I hope you enjoy this book and that it will help to refine and improve your investment approach. Perhaps the best advice I can give you is to bear in mind the wise words of the American Will Rogers – ‘Buy some good stock. Hold it ’til it goes up ... and then sell it. If it doesn’t go up, don’t buy it!’

Jim Slater, December 1997