Thursday, March 26th, 2009
- Are your investment choices the product of carefully calculated investment decisions?
Unfortunately, many investors buy stocks based on hot tips, or simply chase stocks that have been rapidly climbing in price. The lack of a strategy can lead to very poor investment decisions. Using stock selection as an example, stock picking should be based on market anomalies and/or earnings forecasts that have yet to be priced in to the market (i.e. purchase companies with an attractive earnings outlook at cheap valuation multiples).
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Tags: investment mistake
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