William O’Neil’s How to Make in Stocks 1: CAN-SLIM


Many authors have written books on growth stock investment, but which methods are you all practicing? I find the approaches proposed by Mr. Mark Minervini and Mr. William O’Neil particularly intriguing, and I aim to implement their methods to achieve the best possible results.

In this series of articles, I will be writing about William O’Neil’s method for discovering growth stocks, serving as both a record for myself and an informational resource for readers.

For a detailed understanding of William O’Neil’s investment approach, I strongly recommend purchasing his books and thoroughly digesting the content.


CAN-SLIM is an investment strategy proposed by the American investor William O’Neil.

CAN-SLIM consists of seven key investment principles, combining them to pursue success in the stock market.

Here are the main elements of the CAN-SLIM strategy:

  1. C – Current Earnings): The strategy involves seeking companies that demonstrate strong growth in earnings. It prioritizes stocks where profits have increased over the past few quarters and focuses on considering stocks where revenue expansion is continuing.
  2. A – Annual Earnings: From a long-term perspective, the strategy prefers companies where annual earnings have been increasing. It identifies stocks where stable growth is anticipated.
  3. N – New Products or Services: The strategy focuses on companies that offer innovative and new products or services. It checks whether there is distinctiveness in the market that can lead to differentiation.
  4. S – Supply and Demand: The strategy involves analyzing the supply and demand relationship of stocks, checking how the targeted stocks are evaluated based on past trading volumes and price fluctuations.
  5. L – Leader or Laggard: The strategy aims to find leading stocks that perform well in strong markets. It is crucial to identify stocks that lead even in weak markets and become top performers in robust market conditions.
  6. I – Institutional Sponsorship: The strategy involves checking whether reliable institutional investors hold the stock. Since institutional funds can significantly impact stock prices, it is crucial to pay attention to their involvement.
  7. M – Market Direction: The strategy checks the overall market direction. It trades only in strong markets and exercises caution in weak markets.

By combining these principles, CAN-SLIM offers a strategy to find growth-oriented companies and make investments at the right market timing.

In the upcoming series of articles, I plan to introduce each of these seven principles one by one.