A method of identifying a universe of stocks for inclusion into an investment portfolio that includes scanning a computerized stock database and selecting stocks into the universe according to a predetermined set of factors and criteria. Primarily, the scanning of the stock database aims at first identifying only stocks from certain industry sectors. Once these industry sector stocks have been identified, they are further examined to determine if they meet certain established criteria. For example, once the industry sector stocks have been selected, through a computerized scanning process, each of the stocks are examined to determine if they meet selected criteria. Some of the criteria established in the screening process includes determining if the stocks have consistently paid a dividend over a selected period of time and whether the stocks meet a certain debt to equity ratio over a predetermined period of time. Further the scanning process examines whether the stock has stable or rising sales, profits and profits per share for a selected period on a yearly quarter basis. Further the stocks in the database and those meeting preliminary criteria are further examined for credit rating. Once the universe of stocks has been established, then target buy and sell prices are established based on past price history. Thereafter, the stocks that make it into the universe are continuously monitored and as the price of the stocks of the universe reach the target buy and sell prices, they are bought and sold.