Continue reading...After decades of analyzing stocks and equal time spent investing for clients, I’m happy to share in plain English what’s involved in this process, what works, and what doesn’t. Keep in mind the reality that successful stock picking is an effort to maintain a good batting average. In baseball, a batting average of 0.30 or better is considered quite good. With stock picking, you have to do better than 0.50, which means you have more winners than losers
No one gets it right all of the time and it’s not even close. Wall Street analysts all have their selected lists and the financial media regularly hawk their 10 Stocks to Buy Now or something similar. Following that road usually is a direct route to disaster so don’t be tempted.
Determining Stock Prices Let’s begin with the big picture: The stock market goes up and down over time, but the long-term trend is up. When there’s a rally under way, everyone feels like a genius. When the market hits an air pocket, though with few...
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