Stock Picking Rules
- Confine stock purchases to companies that appear able to sustain above-average earnings growth for at least five years. Growth increases, earnings, dividends, and likely the multiple the market will pay for those earnings.
- Never pay more for a stock than can reasonably justified by a firm foundation of value. No perfect measure, but look at how stock trades relative to market and growth potential. Avoid stocks with many years of high growth priced in.
- It helps to buy stocks with the kinds of stories of anticipated growth on which investors can build castles in the air.
176
582 reads
CURATED FROM
IDEAS CURATED BY
A classic guide that blends history, economics, market theory, and behavioral finance to offer practical and actionable advice for investing and achieving financial freedom.
“
The idea is part of this collection:
Learn more about books with this collection
How to align stakeholders
Best practices in product management leadership
How to create value together
Related collections
Similar ideas to Stock Picking Rules
For the Defensive Investor
Once you have your capital, invest 50% of it into bonds or an index fund (depending on market conditions) while the other 50% to be invested on individual stocks.
However, when investing on individual stocks make sure of the ff:
- avoid small cap stocks unless they're diversif...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates