Podcast
Questions and Answers
Why is it important to narrow down the focus to a manageable number of stocks for research?
Why is it important to narrow down the focus to a manageable number of stocks for research?
What is emphasized as a key rule when narrowing down the field to buy stocks?
What is emphasized as a key rule when narrowing down the field to buy stocks?
How many stocks are recommended to narrow the search down to if working with print media sources?
How many stocks are recommended to narrow the search down to if working with print media sources?
What does the text suggest about the process of finding good stocks to invest in?
What does the text suggest about the process of finding good stocks to invest in?
Signup and view all the answers
What is the recommended number of stocks to narrow the search down to if working on the Web?
What is the recommended number of stocks to narrow the search down to if working on the Web?
Signup and view all the answers
What is the purpose of locating reliable sources of information on stocks?
What is the purpose of locating reliable sources of information on stocks?
Signup and view all the answers
What should an investor consider in order to have a real sense of whether a pharmaceutical company is likely to be profitable in the long run?
What should an investor consider in order to have a real sense of whether a pharmaceutical company is likely to be profitable in the long run?
Signup and view all the answers
How does narrowing the list of stocks from 10,000 to 100 (or any other number) affect the selection process for investment candidates?
How does narrowing the list of stocks from 10,000 to 100 (or any other number) affect the selection process for investment candidates?
Signup and view all the answers
What should an investor review when determining their investment strategy?
What should an investor review when determining their investment strategy?
Signup and view all the answers
What type of companies do more conservative investment strategies focus on?
What type of companies do more conservative investment strategies focus on?
Signup and view all the answers
What is an example of a less conservative but not totally adventuresome investment approach?
What is an example of a less conservative but not totally adventuresome investment approach?
Signup and view all the answers
What can investors use to select stocks within a specified range of market capitalization while working on the Web?
What can investors use to select stocks within a specified range of market capitalization while working on the Web?
Signup and view all the answers
What is a shortcut for considering companies listed on NYSE and Nasdaq national market as large cap and mostly mid cap respectively?
What is a shortcut for considering companies listed on NYSE and Nasdaq national market as large cap and mostly mid cap respectively?
Signup and view all the answers
Where can investors find the names of the 65 companies that make up the Dow Jones indexes?
Where can investors find the names of the 65 companies that make up the Dow Jones indexes?
Signup and view all the answers
What should an investor put on paper to bring better focus to the task of settling on an investment strategy?
What should an investor put on paper to bring better focus to the task of settling on an investment strategy?
Signup and view all the answers
True or false: Narrowing the focus to a manageable number of stocks for research is not important in investing?
True or false: Narrowing the focus to a manageable number of stocks for research is not important in investing?
Signup and view all the answers
True or false: It is recommended to settle for 25 stocks if 50 seems like too many to research?
True or false: It is recommended to settle for 25 stocks if 50 seems like too many to research?
Signup and view all the answers
True or false: Early in your investment career, you will learn that researching and finding good stocks to invest in is a process that never stops?
True or false: Early in your investment career, you will learn that researching and finding good stocks to invest in is a process that never stops?
Signup and view all the answers
True or false: It is not necessary to only buy stocks in companies that you understand?
True or false: It is not necessary to only buy stocks in companies that you understand?
Signup and view all the answers
True or false: The text suggests that researching stocks is a one-time process that doesn't require continuous effort?
True or false: The text suggests that researching stocks is a one-time process that doesn't require continuous effort?
Signup and view all the answers
True or false: Locating reliable sources of information on stocks is not important for investing?
True or false: Locating reliable sources of information on stocks is not important for investing?
Signup and view all the answers
Is it necessary to be a biochemist in order to invest in pharmaceutical companies?
Is it necessary to be a biochemist in order to invest in pharmaceutical companies?
Signup and view all the answers
Narrowing the list to only 100 stocks means that you select only 1% or fewer of all stocks as worthy investment candidates.
Narrowing the list to only 100 stocks means that you select only 1% or fewer of all stocks as worthy investment candidates.
Signup and view all the answers
It is recommended to put your investment strategy on paper to bring better focus to the task of settling on a strategy.
It is recommended to put your investment strategy on paper to bring better focus to the task of settling on a strategy.
Signup and view all the answers
The options for investment strategies are limited.
The options for investment strategies are limited.
Signup and view all the answers
More conservative strategies focus on the mature, very large companies that make up the Dow Jones indexes of industrial companies, utilities, and transportation companies.
More conservative strategies focus on the mature, very large companies that make up the Dow Jones indexes of industrial companies, utilities, and transportation companies.
Signup and view all the answers
A less conservative but not totally adventuresome approach may be to check stocks of large cap companies but exclude very large stocks.
A less conservative but not totally adventuresome approach may be to check stocks of large cap companies but exclude very large stocks.
Signup and view all the answers
Investors working on the Web can use a stock screener to select stocks only in the $1 to $5 billion range.
Investors working on the Web can use a stock screener to select stocks only in the $1 to $5 billion range.
Signup and view all the answers
A shortcut for considering companies listed on NYSE as large cap, and companies on the Nasdaq national market list as mostly mid cap is not precise but good enough.
A shortcut for considering companies listed on NYSE as large cap, and companies on the Nasdaq national market list as mostly mid cap is not precise but good enough.
Signup and view all the answers
Using a stock screener is recommended to locate companies within a specified range of market capitalization while working on the Web.
Using a stock screener is recommended to locate companies within a specified range of market capitalization while working on the Web.
Signup and view all the answers
Reviewing investment goals and determining the investment strategy are essential steps in the investment process.
Reviewing investment goals and determining the investment strategy are essential steps in the investment process.
Signup and view all the answers
