So many people today want to know how to find good stock picks for their portfolio. They are always looking for that next hot stick tip that they can make a killing off in the next 30 days.
The problem with most investors is that they take on a very short term outlook. This is the same of most business owners. In both business and stock investing, it’s only a small minority who ever make a significant amount of money. Why is this?
Instead of committing to a strategy and sticking to it long term, the vast majority become so focused on finding that ‘get rich quick’ scheme they will jump from one stock to the next, and ultimately make very little money at all.
The bottom line is, there is no ‘hot stock tip’ or good stock picks that are guaranteed to make you a fortune overnight. Yes, some investors have gotten lucky and made a fortune in a week.
However, often times those same investors lose their entire profit in a very short period of time by continuing to employ the same strategy. When you take on a short term outlook in your investing, you switch from being an investor to a gambler.
Warren Buffet doesn’t worry one bit how his stock does short term. What he considers good stock picks much different than most investor, because he’s looking for long term return on investment.
If the worlds’ top investor invests for the long term; doesn’t it make sense to model that success? Yes, you can make some money short term, but like gambling, you will always lose in the long run.
The reason the market is so volatile today is the get rich quick scheme. Think about it-instead of picking an investment they can be sure will work for them for years to come, most investors jump in when they feel they can make a quick buck.
They continue checking in on their investment all the time. As soon as it starts going down, because they didn’t do their research and don’t know the long term prospects of the company, they panic and sell out.
When thousands follow this same mentality, chaos ensues. This is exact the same behavior that caused the market crash of 1929, and what will continue to be responsible for the volatile up and down turns of the market.
Do yourself and the market a favor, and invest for the long term. The only good stock picks are companies that have exhibited a good profit margin for years and possess favorable future outlook. You will be ensuring your long term wealth, and you will be contributing to a stronger and more predicable economy.