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How the World’s Most Elite Growth Investors Pick Stocks

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Investing can be extremely psychologically demanding.

Not only are you up against the world’s best investors, but you’re also up against yourself. It’s easy to get caught making irrational decisions based on your own personal blindspots or cognitive biases, and these mistakes can lead to buying when you should sell, and vice versa.

For the above reasons, the most successful investors are often those that have rational and proven systems in place.

Having a method to your madness allows you to have confidence in your decisions, while also taking advantage of the strategies and heuristics that have performed well for the world’s most elite investors.

How to Pick Growth Stocks

Today’s infographic comes to us from Investor’s Business Daily, and it details the basics around the discipline of growth investing, including the differences the school has with value investing.

More importantly, it also provides a framework for choosing growth stocks used by elite investors such as William J. O’Neil.

How the World's Most Elite Growth Investors Pick Stocks

Growth investing is all about identifying the companies that are exhibiting behavior that suggests that they will be tomorrow’s leaders.

The benefits to this strategy, if successful, are easy to see. Think about buying Microsoft before it dominated the software industry, or Starbucks before it conquered the United States with its new approach to coffee culture.

The question is: how can these stocks be found reliably?

The CAN SLIM Approach

Fantastic growth stocks don’t just grow on trees – instead, you have to have a system to sift through them.

One easy place to start your search for the next growth leader is with an approach pioneered with investing legend William J. O’Neil. Developed in the 1950s, the CAN SLIM strategy identifies seven characteristics that top-performing stocks often share before making their biggest price gains.

Each characteristic is represented by a letter in the CAN SLIM acronym:

C – Current quarterly earnings
A – Annual earnings growth
N – New product, service, management, or price high
S – Supply and demand
L – Leader or laggard
I – Institutional sponsorship
M – Market direction

Importantly, each of these traits can be a catalyst to influence other traits. When they compound, it can lead to big price movements that beat the rest of the market.

Breaking Down the Factors

Let’s look at each characteristic of the CAN SLIM approach in more detail:

Current quarterly earnings
Look for companies with a minimum earnings-per share (EPS) growth of 25% in the most recent quarter, though 50% or higher is even better. These companies should also have 20% sales growth in the quarter, and a 17% ROE to ensure that growth is sustainable.

Annual earnings growth
Look for companies with annual EPS growth of at least 25% to 50% in each of the previous 3-5 years. This helps confirm that the company is showing long-term growth.

New product, service, management, or price high
What is the company doing that is new or game-changing? To be a market winner, a company must constantly reinvent itself to position itself for higher-than-average profits.

Examples: Consider Google’s monetization of search ads, or McDonald’s novel approach to food. These innovations set the companies up for massive profits and success.

Supply and demand
A stock price increases when more investors demand an increasingly limited supply of shares. Spikes in price, along with volume accumulation, mean that demand is increasing. If this is coming from institutional investors, who tend to buy and hold, it’s even better.

Leader or laggard
The leading companies in leading industries – the best of the best – will be the companies that have the most growth potential.

Institutional sponsorship
75% of all market activity comes from professional investors, such as mutual funds or pension funds. Not only does the smart money help validate a potential growth stock by being involved, but they can trigger big price increases.

Market direction
CAN SLIM investors believe you should invest with the market, as opposed to against it. That’s because an individual stock moves with the market 75% of the time.

Putting it Together

Understanding how the different CAN SLIM factors work together – and how they can help bring massive bouts of growth for the underlying stock – is key for the successful growth investor.

Using a rational system like this also helps you in overcoming cognitive biases or making other mistakes that may affect your investments, as well.

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World Beer Index 2021: What’s the Beer Price in Your Country?

The global desire for beer prevails even in a pandemic. These maps compare the average beer price in 58 countries—just how much do we drink?

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What’s the Beer Price in Your Country?

View the high resolution of this infographic by clicking here.

Although fewer people have been able to grab a beer at the pub during this pandemic, the global desire for beer prevails. For example, sales of the Corona beer actually shot up in the past year, despite—or perhaps because of—associations with the coronavirus.

This World Beer Index from Expensivity compares the average price of a bottle of beer in 58 countries in a detailed map. Additionally, we show which countries spend the most on beer per capita, and just how much beer people really drink.

Pricey Pints: The Average Beer Price

Researchers calculated the average price of a typical bottle of beer (330ml, just shy of a pint) from well known brands via online stores and statistics database Numbeo. In addition, local beer prices were pulled from hotel and bar menus, and average values converted to USD.

In Qatar, you’d have to shell out $11.26 for a single beer, which would surely make for a really expensive night out on the town. In part, this is because in 2019, the Muslim-majority country introduced a 100% excise tax on top the previous sales price of all alcohol imports.

These steep prices are aimed at tourists—and with Qatar hosting the 2022 men’s soccer World Cup, there’ll be thousands of visitors in the country looking for a cold one at any price.

RankCountryCapital CityAverage Price of a Beer
1South AfricaPretoria, Bloemfontein, Cape Town$1.68
2UkraineKyiv$1.76
3ArgentinaBuenos Aires$1.79
4Bosnia And HerzegovinaSarajevo$1.96
5GhanaAccra$2.05
6TunisiaTunis$2.09
7GeorgiaTbilisi$2.30
8North MacedoniaSkopje$2.34
9ChileSantiago$2.40
10Czech Republic (Czechia)Prague$2.49
11RwandaKigali$2.52
12BrazilBrasilia$2.52
13HaitiPort Au Prince$2.66
14ColombiaBogota$2.72
15SpainMadrid$2.74
16PanamaPanama City$2.74
17Sri LankaColombo$2.77
18HungaryBudapest$2.84
19ArmeniaYerevan$2.96
20IndonesiaJakarta$3.17
21AzerbaijanBaku$3.18
22GuyanaGeorgetown$3.39
23BoliviaSanta Cruz$3.42
24KazakhstanNur-Sultan$3.44
25BelgiumBrussels$3.47
26TurkeyIstanbul$3.61
27MaltaValletta$3.65
28BelarusMinsk$3.72
29EgyptCairo$3.80
30IndiaNew Delhi$3.90
31CanadaOttawa$3.96
32AustriaVienna$3.99
33WalesCardiff$4.06
34NepalKathmandu$4.13
35ScotlandEdinburgh$4.18
36GreeceAthens$4.25
37PhilippinesManila$4.25
38PolandWarsaw$4.37
39MexicoMexcio City$4.46
40LithuaniaVilnius$4.55
41South KoreaSeoul$4.56
42NetherlandsAmsterdam$4.60
43GermanyBerlin$4.64
44MalaysiaKuala Lumpur$4.74
45United StatesWashington D.C.$4.75
46ThailandBangkok$4.82
47PortugalLisbon$5.06
48RussiaMoscow$5.08
49SingaporeSingapore$5.17
50DenmarkCopenhagen$5.20
51ItalyRome$5.83
52EnglandLondon$5.97
53JapanTokyo$6.16
54SwitzerlandBern$6.23
55FranceParis$6.39
56ChinaBeijing$7.71
57JordanAmman$9.40
58QatarDoha$11.26

At just $1.68 per bottle, South Africa has the lowest average beer price thanks at least partially to cultural norms of buying in bulk.

Cashing In: The Per Capita Spend on Beer

The price of a single beer is one thing, but which countries spend the most on beer itself? Germany unsurprisingly tops the list here with nearly $2,000 of expenditures per capita, bolstered by its strong beer culture and annual Oktoberfest celebration.

Germany also prides itself on the purity of its beer—the vast majority of brewers follow the Reinheitsgebot, centuries-old purity laws that broadly state that beer may contain only three ingredients: water, barley, and hops.

World Beer Index 2021 - Per Capita Spend on Beer 820px
View the high resolution of this infographic by clicking here.

Following closely behind is Poland, which spends $1,738 per capita. Meanwhile, the U.S. ranks eighth in the world for the highest spending on beer per capita at $1,554—beer is also the country’s most popular alcoholic beverage.

Getting Boozy: How Much Beer Do People Drink?

Using data from the World Health Organization, the visualization below also digs into how much beer is consumed around the world per capita.

The Czech Republic emerges on top in this regard, with 468 beers on average in a year—that works out to 1.3 beers per day. Spain and Germany are next with 417 and 411 beers, respectively.

World Beer Index 2021 - Per Capita Beer Consumption 820px
View the high resolution of this infographic by clicking here.

On the flip side, people in Haiti only drink about four beers yearly. This may be because they prefer something a little stronger—97% of alcohol consumption in the nation comes from spirits such as rum.

Beer has been around for over 7,000 years. No matter the beer price in your country, it’s worth raising a glass to the timelessness of this humble beverage.

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The Population of China in Perspective

China is the world’s most populous country. But how does the population of China compare to the rest of the world?

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population of china

The Population of China in Perspective

China is the world’s most populous country with an astounding 1.44 billion citizens. Altogether, the size of the population of China is larger than nearly four regions combined: South America, Europe (excluding Russia), the U.S. & Canada, and Australia & New Zealand.

Using data from the United Nations, this unconventional map reveals the comparative size of China’s population next to a multitude of other countries.

Note: To keep the visualization easy to read, we’ve simplified the shapes representing countries. For example, although we’ve included Alaska and Hawaii in U.S. population totals, the U.S. is represented by the contiguous states map only.

A Historical Perspective

Looking at history, the population of China has more than doubled since the 1950s. The country was the first in the world to hit one billion people in 1980.

However, in 1979, in an attempt to control the burgeoning population, the infamous one-child policy was introduced, putting controls on how many children Chinese citizens could have.

While the government eventually recognized the negative implications of this policy, it appeared to be too little, too late. The two-child policy was introduced in 2016, but it has not yet reversed the current slowdown in population growth.

YearChina's Population (Millions)Annual Rate of Growth (%)Median AgeFertility Rate
1955612.22.00%22.26.11
1960660.41.53%21.35.48
1965724.21.86%19.86.15
1970827.62.70%19.36.30
1975926.22.28%20.34.85
19801,000.11.55%21.93.01
19851,075.61.47%23.52.52
19901,176.91.82%24.92.73
19951,240.91.07%27.41.83
20001,290.60.79%30.01.62
20051,330.80.62%32.61.61
20101,368.80.57%35.01.62
20151,406.80.55%36.71.64
20161,414.00.51%37.01.65
20171,421.00.49%37.01.65
20181,427.60.47%37.01.65
20191,433.80.43%37.01.65
20201,439.30.39%38.41.69

The fertility rate has been consistently falling from over 6 births per woman in 1955 to 1.69 in 2020. Today, the median age in China is 38 years old, rising from 22 in 1955. Longer life spans and fewer births form a demographic trend that has many social and economic implications.

Overall, China’s young population is becoming scarcer, meaning that the domestic labor market will eventually begin shrinking. Additionally, the larger share of elderly citizens will require publicly-funded resources, resulting in a heavier societal and financial burden.

Strength in Numbers

Despite these trends, however, China’s current population remains massive, constituting almost 20% of the world’s total population. Right now 71% of the Chinese population is between the ages of 15 and 65 years old, meaning that the labor supply is still immense.

Here are the populations of 65 countries from various regions of the world—and added together, you’ll see they still fall short of the population of China:

CountryPopulation Region
🇺🇸 U.S.331,002,651North America
🇨🇦 Canada37,742,154North America
🇧🇷 Brazil212,559,417South America
🇨🇴 Colombia50,882,891South America
🇦🇷 Argentina45,195,774South America
🇵🇪 Peru32,971,854South America
🇻🇪 Venezuela28,435,940South America
🇨🇱 Chile19,116,201South America
🇪🇨 Ecuador17,643,054South America
🇧🇴 Bolivia11,673,021South America
🇵🇾 Paraguay7,132,538South America
🇺🇾 Uruguay3,473,730South America
🇬🇾 Guyana786,552South America
🇸🇷 Suriname586,632South America
🇬🇫 French Guyana298,682South America
🇫🇰 Falkland Islands3,480South America
🇦🇺 Australia25,499,884Oceania
🇳🇿 New Zealand4,822,233Oceania
🇩🇪 Germany83,783,942Europe
🇫🇷 France65,273,511Europe
🇳🇱 Netherlands17,134,872Europe
🇧🇪 Belgium11,589,623Europe
🇦🇹 Austria9,006,398Europe
🇨🇭 Switzerland8,654,622Europe
🇱🇺 Luxembourg625,978Europe
🇲🇨 Monaco39,242Europe
🇱🇮 Liechtenstein38,128Europe
🇮🇹 Italy60,461,826Europe
🇪🇸 Spain46,754,778Europe
🇬🇷 Greece10,423,054Europe
🇵🇹 Portugal10,196,709Europe
🇷🇸 Serbia8,737,371Europe
🇭🇷 Croatia4,105,267Europe
🇧🇦 Bosnia and Herzegovina3,280,819Europe
🇦🇱 Albania2,877,797Europe
🇲🇰 North Macedonia2,083,374Europe
🇸🇮 Slovenia2,078,938Europe
🇲🇪 Montenegro628,066Europe
🇲🇹 Malta441,543Europe
🇦🇩 Andorra77,265Europe
🇸🇲 San Marino33,931Europe
🇬🇮 Gibraltar33,691Europe
🇻🇦 Vatican City801Europe
🇬🇧 United Kingdom67,886,011Europe
🇸🇪 Sweden10,099,265Europe
🇩🇰 Denmark5,792,202Europe
🇫🇮 Finland5,540,720Europe
🇳🇴 Norway5,421,241Europe
🇮🇪 Ireland4,937,786Europe
🇱🇹 Lithuania2,722,289Europe
🇱🇻 Latvia1,886,198Europe
🇪🇪 Estonia1,326,535Europe
🇮🇸 Iceland341,243Europe
Channel Islands173,863Europe
🇮🇲 Isle of Man85,033Europe
🇫🇴 Faroe Islands48,863Europe
🇺🇦 Ukraine43,733,762Europe
🇵🇱 Poland37,846,611Europe
🇷🇴 Romania19,237,691Europe
🇨🇿 Czechia10,708,981Europe
🇭🇺 Hungary9,660,351Europe
🇧🇾 Belarus9,449,323Europe
🇧🇬 Bulgaria6,948,445Europe
🇸🇰 Slovakia5,459,642Europe
🇲🇩 Moldova4,033,963Europe
Total1,431,528,252

To break it down even further, here’s a look at the population of each of the regions listed above:

  • Australia and New Zealand: 30.3 million
  • Europe (excluding Russia): 601.7 million
  • South America: 430.8 million
  • The U.S. and Canada: 368.7 million

Combined their population is 1.432 billion compared to China’s 1.439 billion.

Overall, the population of China has few comparables. India is one exception, with a population of 1.38 billion. As a continent, Africa comes in close as well at 1.34 billion people. Here’s a breakdown of Africa’s population for further comparison.

CountryPopulation Region
🇳🇬 Nigeria206,139,589Africa
🇬🇭 Ghana31,072,940Africa
🇨🇮 Côte d'Ivoire26,378,274Africa
🇳🇪 Niger24,206,644Africa
🇧🇫 Burkina Faso20,903,273Africa
🇲🇱 Mali20,250,833Africa
🇸🇳 Senegal16,743,927Africa
🇬🇳 Guinea13,132,795Africa
🇧🇯 Benin12,123,200Africa
🇹🇬 Togo8,278,724Africa
🇸🇱 Sierra Leone7,976,983Africa
🇱🇷 Liberia5,057,681Africa
🇲🇷 Mauritania4,649,658Africa
🇬🇲 Gambia2,416,668Africa
🇬🇼 Guinea-Bissau1,968,001Africa
🇨🇻 Cabo Verde555,987Africa
🇸🇭 Saint Helena6,077Africa
🇿🇦 South Africa59,308,690Africa
🇳🇦 Namibia2,540,905Africa
🇧🇼 Botswana2,351,627Africa
🇱🇸 Lesotho2,142,249Africa
🇸🇿 Eswatini1,160,164Africa
🇪🇬 Egypt102,334,404Africa
🇩🇿 Algeria43,851,044Africa
🇸🇩 Sudan43,849,260Africa
🇲🇦 Morocco36,910,560Africa
🇹🇳 Tunisia11,818,619Africa
🇱🇾 Libya6,871,292Africa
🇪🇭 Western Sahara597,339Africa
🇨🇩 Democratic Republic of the Congo89,561,403Africa
🇦🇴 Angola32,866,272Africa
🇨🇲 Cameroon26,545,863Africa
🇹🇩 Chad16,425,864Africa
🇨🇬 Congo5,518,087Africa
🇨🇫 Central African Republic4,829,767Africa
🇬🇦 Gabon2,225,734Africa
🇬🇶 Equatorial Guinea1,402,985Africa
🇸🇹 Sao Tome and Principe219,159Africa
🇪🇹 Ethiopia114,963,588Africa
🇹🇿 Tanzania59,734,218Africa
🇰🇪 Kenya53,771,296Africa
🇺🇬 Uganda45,741,007Africa
🇲🇿 Mozambique31,255,435Africa
🇲🇬 Madagascar27,691,018Africa
🇲🇼 Malawi19,129,952Africa
🇿🇲 Zambia18,383,955Africa
🇸🇴 Somalia15,893,222Africa
🇿🇼 Zimbabwe14,862,924Africa
🇷🇼 Rwanda12,952,218Africa
🇧🇮 Burundi11,890,784Africa
🇸🇸 South Sudan11,193,725Africa
🇪🇷 Eritrea3,546,421Africa
🇲🇺 Mauritius1,271,768Africa
🇩🇯 Djibouti988,000Africa
🇷🇪 Réunion895,312Africa
🇰🇲 Comoros869,601Africa
🇾🇹 Mayotte272,815Africa
🇸🇨 Seychelles98,347Africa
Total1,340,598,147

Future Outlook on the Population of China

Whether or not China’s population growth is slowing appears to be less relevant when looking at its sheer size. While India is expected to match the country’s population by 2026, China will remain one of the world’s largest economic powerhouses regardless.

It is estimated, however, that the population of China will drop below one billion people by the year 2100—bumping the nation to third place in the ranking of the world’s most populous countries. At the same time, it’s possible that China’s economic dominance may be challenged by these same demographic tailwinds as time moves forward.

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