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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: Wyätt Gwyön who wrote (49107)11/25/2001 11:23:52 PM
From: Uncle Frank  Read Replies (1) | Respond to of 54805
 
>> it is, rather, the uninformed decisionmakers out there who are most vulnerable, psychologically if not otherwise.

Uninformed decision makers are gamblers, not investors. If the uninformed are in the market at all, it should be through the vehicle of passively managed index funds. But informed decision makers might well consider some suggestions from The King:

Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.

Always invest for the long term.

Buy companies with strong histories of profitability and with a dominant business franchise.

Look for companies with high profit margins.

Risk can be greatly reduced by concentrating on only a few holdings.

Do not take yearly results too seriously. Instead, focus on four or five-year averages.

Wide diversification is only required when investors do not understand what they are doing.


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