Читать книгу Investing All-in-One For Dummies - Eric Tyson - Страница 152

Although the information in the previous section can help you shrink your stock choices from thousands of stocks to maybe a few dozen or a few hundred (depending on how well the general stock market is doing), the purpose of this section is to help you cull the so-so growth stocks to unearth the go-go ones. It’s time to dig deeper for the biggest potential winners. Keep in mind that you probably won’t find a stock to satisfy all the criteria presented here. Just make sure that your selection meets as many criteria as realistically possible. But hey, if you do find a stock that meets all the criteria cited, buy as much as you can!

To pick a winning stock, don’t just pick a stock and hope that it does well. In fact, your personal stock-picking research shouldn’t even begin with stocks; you should first look at the investing environment (politics, economics, demographics, and so on) and choose which industry will benefit. After you know which industry will prosper accordingly, then you can start to analyze and choose stock(s).

After you choose a stock, you should wait. Patience is more than just a virtue; patience is to investing what time is to a seed that’s planted in fertile soil. The legendary Jesse Livermore said that he didn’t make his stock market fortunes by trading stocks; his fortunes were made “in the waiting.” Why?

When you’re told to have patience and a long-term perspective, you’re waiting for a specific condition to occur: for the market to discover what you have! When you have a good stock in a good industry, it takes time for the market to discover it. When a stock has more buyers than sellers, it rises — it’s as simple as that. As time passes, more buyers find your stock. As the stock rises, it attracts more attention and, therefore, more buyers. The more time that passes, the better your stock looks to the investing public.

When you’re choosing growth stocks, you should consider investing in a company only if it makes a profit and if you understand how it makes that profit and from where it generates sales. Part of your research means looking at the industry and sector and economic trends in general.