Building up a portfolio of profitable assets should be an ongoing process for any investor. To start with, ask yourself a few questions.
Are the stocks in line with your risk tolerance? Are your selections diversified? Has management shown the ability to build shareholder value? Are your purchases priced close to the intrinsic value? Remember that the price you pay will affect your returns directly.
Many companies are mediocre and hardly reward their shareholders with gains. However, if you dig into a company’s annual reports, outlook, management and study their charts, you can uncover a few gems.
Conduct your own research before you purchase any stocks. If you enter the market without any idea of the fundamentals, you are risking your hard-earned money and retirement plans.