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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Curbstone who wrote (11779)12/2/1999 8:51:00 PM
From: Mike Buckley  Read Replies (2) of 54805
 
If you're ambivilant about selling them,...

If you're ambivalent about selling them you'd probably be ambivalent about buying them. Don't ever own a stock you don't know exactly why you want it in your portfolio. If you're ambivalent, sell it and take your time deciding how to deploy the funds.

Back to basics:

Can you describe the company's core business in one sentence?

Can you describe in one sentence the most important reason it's long-term success is likely?

If not, bone up on your research and decide whether or not it's a keeper.

Another test:

Quickly, in ten seconds and using only one word, what's the most important criterion for having a stock in your portfolio?

Quickly, in ten seconds, what is the one criterion that would prevent you from having a stock in your portfolio regardless of the other wonderful characteristics?

If you don't know the answers to those questions in a nano-second, formulate the answers and act on them.

--Mike Buckley
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