Investment Strategy #3 - Zulu Principle

The Zulu Principle is about dedicating a disproportionate amount of effort to become an expert within a narrow subject though learning. From Slater (2008), this name is applied to the investment strategy because the Jim Slater’s wife read an Reader’s Digest article on the Zulu people and subsequently she had more knowledge than him within a few minutes. He thought that if she carried on studying on the same subject and lived in a Zulu village from a fixed period of time she would become a leading expert. The investor can be very successful by applying the same principle to the stock market. One can become an expert in blue chips, growth companies, turnarounds and/or cyclical companies.