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Stock selection criteria in a few sentences

It's been my ambition to summarize the entire fundamental investing philosophy in few sentences. This is my first attempt.

"Buy stock with growing real earnings per share and growing dividend at fair price. Sell stock only when the PE ratio is too high, in which expected EPS growth is not high enough to sustain the increase of price maintaining a reasonable PE ratio."

Behind such a simple statement, there are many ideas that need to be clarified.

Why real? How to know the reported profit is actually real? Can you actually differentiate real profit and fake profit by reading financial statements? (Yes, you can.)

Why EPS? Why not just about profit after tax?

Why growing EPS? What is the significant of GROWING earnings per share?

Why growing dividend? What is the significant of GROWING dividend?

Why price matter? Isn't it just about buy and hold long term? (No, timing and price matter. Isn't this obvious?)

I will add future posts explaining the above one by one.

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