
Jim Slater’s Tried And Tested Methods To Improve Investment Returns

James Derrick Slater was a British accountant, investor and business writer. Slater rose to prominence in the 1970s as a businessman and financier, who was the founding Chairman of Slater Walker, an investment bank and conglomerate which collapsed in the secondary banking crisis of 1973–75. He started working as a chartered accountant at the age of 24 and joined the Dohm Group. Fortunately, he was soon promoted to the position of general manager.
After his job at Dohm, he was appointed secretary and chief accountant of Park Royal Vehicles, a wholly-owned subsidiary of ACV Group. He was then made commercial director of its subsidiary AEC. After Leyland Motors took over ACV, Slater was later promoted to deputy sales director under Donald Stokes. While working for AEC Skater found interest in investing and developed a system for picking stocks which would much later form the basis of his book “The Zulu Principle”.
Slater was referred to as the “merger lord”

Pixabay/ Pexels | Money grows on the tree of persistence
His stated ambition was to own “a significant percentage of every major asset situation in Britain”, and for a while, it looked as though his investment vehicle, Slater Walker, might do it. The “godfather of asset-stripping” (gaining control of a firm, then selling off underperforming assets), he made and lost a fortune before reinventing himself as an investment guru and children’s author.
His book focuses on simple techniques for identifying small dynamic growth companies whose shares are at a low price compared to their future prospects. With Hemmington Scott, he devised a monthly company statistical guide, Company REFS, also available as a daily online service, to make the identification of such shares easier for the private investor.

Michael Steinberg/ Pexels | To get rich, you have to be making money while you’re asleep
Slater bought and sold companies the same way he bought and sold shares. He was not interested in the operations of the companies and was interested only in the profit to be made from buying and selling the businesses and their assets.
This was the period when the term “asset stripping” was coined to describe his knack for buying an undervalued company and selling its properties or other assets at a huge profit. He always insisted there was nothing wrong with asset stripping because it resulted in assets being used more efficiently.

Essow/ Pexels | Wealth is largely the result of habit
Slater’s first principle of investing, as outlined in his 1992 book The Zulu Principle, was that “focusing on a relatively narrow field” gives you an advantage. He used the p/e to growth (Peg) ratio to hunt down undervalued small companies with good growth prospects.
This took the familiar price/earnings ratio “a stage further”, dividing it by the company’s annual growth rate. The lower the Peg, the better the opportunity. He used to insist on a dividend yield of 4% too but later relaxed the rule “although a meaningful rising yield is an obvious plus”. He also looked for an “optimistic” chairman’s statement, an absence of family control, for cash flow to exceed profits and no substantial selling of shares by directors.
More in Investments
-
`
8 Celebrities Who Love Costco Just as Much as You Do
Costco may be known for its bulk deals and iconic $1.50 hot dog combo, but it’s not just everyday shoppers who...
June 6, 2025 -
`
14 Business Leaders Share Career Advice That Still Guides Them
We all start somewhere. And for many successful business leaders, it was a few words of advice early in their careers...
May 29, 2025 -
`
8 Celebrities Who Didn’t Attend the 2025 Met Gala
Each year, the Met Gala served as a high-profile intersection of fashion, fame, and art. But while many stars jumped at...
May 24, 2025 -
`
Warren Buffett’s Advice on Staying Calm During Market Dips
It’s easy to get spooked when the stock market hits a rough patch. Red numbers flash across your screen, headlines warn...
May 22, 2025 -
`
New U.S. Tariff Rules Raise Online Shopping Costs for Americans
The price tags on your favorite budget-friendly finds from Shein, Temu, or AliExpress may suddenly seem a lot less appealing—and it’s...
May 15, 2025 -
`
15 Rich Celebs Who Choose Practical Choices Over Lavish Spending
Celebrities often live in a world where lavish spending is the norm. Expensive cars, private jets, and luxury shopping sprees are...
May 9, 2025 -
`
3 Smart Strategies to Build a Million-Dollar Investment Portfolio
Building wealth doesn’t require hitting the lottery or having a six-figure salary. Sometimes, it starts with discipline, clear planning, and a...
May 1, 2025 -
`
U.S. Stocks and Dollar Drop as Trump’s Tariff Moves Shake Wall Street
The U.S. stock market took a sharp hit Thursday after fresh updates from Washington sent traders into risk-off mode. With a...
April 25, 2025 -
`
China Hits Back with 34% Tariffs on U.S. Imports, Escalating Trade War
On April 10, China will implement a sweeping 34% tariff on all goods imported from the United States. This is a...
April 18, 2025
You must be logged in to post a comment Login