Podcast
Questions and Answers
What is the recommended number of stocks to have on your list when getting started as a do-it-yourself investor?
What is the recommended number of stocks to have on your list when getting started as a do-it-yourself investor?
- Less than 10 stocks
- More than 100 stocks
- 10 to 20 stocks
- 50 to 100 stocks (correct)
What is the purpose of settling on an investment strategy and writing it down?
What is the purpose of settling on an investment strategy and writing it down?
- To limit your investment options
- To help you concentrate on only certain kinds of stocks (correct)
- To increase the number of stocks on your list
- To diversify your investment portfolio
What is the next step after making sure you have a list of 50 to 100 stocks?
What is the next step after making sure you have a list of 50 to 100 stocks?
- Investing in all the listed stocks
- Conducting a preliminary screening (correct)
- Analyzing the company's stock performance
- Seeking assistance from a financial advisor
What is the purpose of reviewing your list and asking yourself about which companies you understand?
What is the purpose of reviewing your list and asking yourself about which companies you understand?
What should you consider when making a fair and reasonable call about a company's future profitability?
What should you consider when making a fair and reasonable call about a company's future profitability?
What is the purpose of practicing stock tracking and investing?
What is the purpose of practicing stock tracking and investing?
What is the primary goal of researching mutual funds' stock holdings?
What is the primary goal of researching mutual funds' stock holdings?
What is the purpose of reviewing the list of potential stocks to invest in?
What is the purpose of reviewing the list of potential stocks to invest in?
What is the suggested number of stocks to aim for as prime candidates for purchase?
What is the suggested number of stocks to aim for as prime candidates for purchase?
What does the author recommend doing after getting the list down to no more than ten stocks?
What does the author recommend doing after getting the list down to no more than ten stocks?
What cautionary advice does the author provide for investing in unfamiliar industries or companies?
What cautionary advice does the author provide for investing in unfamiliar industries or companies?
How can an individual obtain a company's annual report?
How can an individual obtain a company's annual report?
What is the purpose of visiting the Public Register’s Annual Reports Service Web site?
What is the purpose of visiting the Public Register’s Annual Reports Service Web site?
What is the author's view on investing in 'hot stocks' without understanding the underlying companies?
What is the author's view on investing in 'hot stocks' without understanding the underlying companies?
'Never buy a stock in a company or industry that you don’t understand' implies:
'Never buy a stock in a company or industry that you don’t understand' implies:
Selecting 50 to 100 stocks is the first step recommended by the author when getting started as a do-it-yourself investor in stocks.
Selecting 50 to 100 stocks is the first step recommended by the author when getting started as a do-it-yourself investor in stocks.
The author suggests that the resulting list of stocks after preliminary screening may be as few as 10.
The author suggests that the resulting list of stocks after preliminary screening may be as few as 10.
According to the author, it is important to make cuts in your list of selected companies based on your understanding and ability to make a fair and reasonable call about their future profitability.
According to the author, it is important to make cuts in your list of selected companies based on your understanding and ability to make a fair and reasonable call about their future profitability.
The author recommends relying solely on intuition when picking stocks.
The author recommends relying solely on intuition when picking stocks.
The techniques described in Chapter 4 help in coming up with a list of potential stocks.
The techniques described in Chapter 4 help in coming up with a list of potential stocks.
The author recommends concentrating on certain kinds of stocks based mainly on size and risk.
The author recommends concentrating on certain kinds of stocks based mainly on size and risk.
Reviewing mutual funds' stock holdings is an important step in selecting potential stocks for investment.
Reviewing mutual funds' stock holdings is an important step in selecting potential stocks for investment.
The author recommends having no more than 20 stocks on your list when getting started as a do-it-yourself investor.
The author recommends having no more than 20 stocks on your list when getting started as a do-it-yourself investor.
The author suggests researching the eight criteria for each stock on your list before making a final decision.
The author suggests researching the eight criteria for each stock on your list before making a final decision.
The goal is to use tools and research resources to cut the list of potential stocks to invest in from 50 or so down to fewer than five candidates for actual purchase.
The goal is to use tools and research resources to cut the list of potential stocks to invest in from 50 or so down to fewer than five candidates for actual purchase.
The author advises against investing in 'hot stocks' without understanding the underlying companies.
The author advises against investing in 'hot stocks' without understanding the underlying companies.
The author recommends selecting one to three stocks for purchase after reducing the list to no more than ten prime candidates.
The author recommends selecting one to three stocks for purchase after reducing the list to no more than ten prime candidates.
The purpose of visiting the Public Register’s Annual Reports Service Web site is to obtain printed copies of annual reports.
The purpose of visiting the Public Register’s Annual Reports Service Web site is to obtain printed copies of annual reports.
The author suggests cutting out 10 or 15 stocks from the list to get down to a more manageable number to work with.
The author suggests cutting out 10 or 15 stocks from the list to get down to a more manageable number to work with.
The author advises considering a company's product, staying power, and industry growth potential before investing in its stock.
The author advises considering a company's product, staying power, and industry growth potential before investing in its stock.
An individual can obtain a company's annual report by visiting the company’s Web site and requesting or downloading it.
An individual can obtain a company's annual report by visiting the company’s Web site and requesting or downloading it.
Flashcards
Initial Stock List Size
Initial Stock List Size
A list of 50-100 stocks will help narrow down investment options.
Written Investment Strategy
Written Investment Strategy
Focuses your investment choices.
Next Step After Initial List
Next Step After Initial List
Preliminary screening refines your initial stock list.
Reviewing Company Understanding
Reviewing Company Understanding
Signup and view all the flashcards
Judging Future Profitability
Judging Future Profitability
Signup and view all the flashcards
Practicing Stock Tracking
Practicing Stock Tracking
Signup and view all the flashcards
Researching Mutual Fund Holdings
Researching Mutual Fund Holdings
Signup and view all the flashcards
Reviewing Potential Stocks
Reviewing Potential Stocks
Signup and view all the flashcards
Target Number of Prime Candidates
Target Number of Prime Candidates
Signup and view all the flashcards
After Reducing to Ten…
After Reducing to Ten…
Signup and view all the flashcards
Investing in Unfamiliar Territory
Investing in Unfamiliar Territory
Signup and view all the flashcards
Obtaining a Company's Annual Report
Obtaining a Company's Annual Report
Signup and view all the flashcards
Public Register's Annual Reports
Public Register's Annual Reports
Signup and view all the flashcards
Investing in 'Hot Stocks'
Investing in 'Hot Stocks'
Signup and view all the flashcards
Implication of 'Never buy a stock in a company or industry that you don’t understand'
Implication of 'Never buy a stock in a company or industry that you don’t understand'
Signup and view all the flashcards
Selecting 50 to 100 stocks is the first step recommended by the author when getting started as a do-it-yourself investor in stocks.
Selecting 50 to 100 stocks is the first step recommended by the author when getting started as a do-it-yourself investor in stocks.
Signup and view all the flashcards
The author suggests that the resulting list of stocks after preliminary screening may be as few as 10.
The author suggests that the resulting list of stocks after preliminary screening may be as few as 10.
Signup and view all the flashcards
According to the author, it is important to make cuts in your list of selected companies based on your understanding and ability to make a fair and reasonable call about their future profitability.
According to the author, it is important to make cuts in your list of selected companies based on your understanding and ability to make a fair and reasonable call about their future profitability.
Signup and view all the flashcards
The author recommends relying solely on intuition when picking stocks.
The author recommends relying solely on intuition when picking stocks.
Signup and view all the flashcards
The techniques described in Chapter 4 help in coming up with a list of potential stocks.
The techniques described in Chapter 4 help in coming up with a list of potential stocks.
Signup and view all the flashcards
The author recommends concentrating on certain kinds of stocks based mainly on size and risk.
The author recommends concentrating on certain kinds of stocks based mainly on size and risk.
Signup and view all the flashcards
Reviewing mutual funds' stock holdings is an important step in selecting potential stocks for investment.
Reviewing mutual funds' stock holdings is an important step in selecting potential stocks for investment.
Signup and view all the flashcards
The author recommends having no more than 20 stocks on your list when getting started as a do-it-yourself investor.
The author recommends having no more than 20 stocks on your list when getting started as a do-it-yourself investor.
Signup and view all the flashcards
The author suggests researching the eight criteria for each stock on your list before making a final decision.
The author suggests researching the eight criteria for each stock on your list before making a final decision.
Signup and view all the flashcards
The goal is to use tools and research resources to cut the list of potential stocks to invest in from 50 or so down to fewer than five candidates for actual purchase.
The goal is to use tools and research resources to cut the list of potential stocks to invest in from 50 or so down to fewer than five candidates for actual purchase.
Signup and view all the flashcards
The author advises against investing in 'hot stocks' without understanding the underlying companies.
The author advises against investing in 'hot stocks' without understanding the underlying companies.
Signup and view all the flashcards
The author recommends selecting one to three stocks for purchase after reducing the list to no more than ten prime candidates.
The author recommends selecting one to three stocks for purchase after reducing the list to no more than ten prime candidates.
Signup and view all the flashcards
The purpose of visiting the Public Register’s Annual Reports Service Web site is to obtain printed copies of annual reports.
The purpose of visiting the Public Register’s Annual Reports Service Web site is to obtain printed copies of annual reports.
Signup and view all the flashcards
The author suggests cutting out 10 or 15 stocks from the list to get down to a more manageable number to work with.
The author suggests cutting out 10 or 15 stocks from the list to get down to a more manageable number to work with.
Signup and view all the flashcards
The author advises considering a company's product, staying power, and industry growth potential before investing in its stock.
The author advises considering a company's product, staying power, and industry growth potential before investing in its stock.
Signup and view all the flashcards
