- Every 4 weeks for a year, invest a roughly equal amount in the single best "Value Line Investment Survey (VL)" asset not already held.
- Exclude from consideration limited partnerships, real estate investment trusts, exchange traded funds (ETFs), and stocks not traded on U.S. exchanges, i.e. assets on the Toronto Stock Exchange. Also avoid stocks with negative recent return on equity, negative or "NA" levered free cash flow, or a negative or "NA" trailing price to earnings ratio (P/E).
- Limit remaining purchase candidates to VL securities that meet one or both of these two sets of criteria:
a. High Quality: stocks with VL timeliness and safety rank each 1, 2, or 3, financial strength A++, A+, or A, a maximum combined numerical rank of 5 or less (counting A++ as 0, A+ as 1, and A as 2, and adding this value to the latest reported VL timeliness and safety ranks), 4 or 5 Motley Fool CAPS stars, and VL 3-5 year average annual projected total return 15.00% or above; OR
b. Smaller-Cap Dividend: stocks from VL small-cap above average dividend screen with VL timeliness rank 1 or 2, safety rank 1, 2, or 3, financial strength rating B+ or better, a P/E in the range 4-18, a dividend of 2.5% or better, dividend payout ratio 0.60 or below, at least 3 significant value mutual fund holders of the asset's shares, 4 or 5 Motley Fool CAPS stars, and VL 3-5 year average annual projected total return 15.00% or above.
- Once the resulting portfolio reaches 13 (i.e. in 52 weeks), replace the worst performing stock that no longer meets either of the above sets of criteria with the single best available new asset that does.
- Repeat indefinitely.