Maintaining a stock buy list of the best companies to invest in at lower prices will give you an advantage when bargains become available. One of the lessons we should have learned from the 2010 Flash Crash is to take advantage of volatility to increase your rate of return. Bargains can emerge and disappear as quickly as they appeared.
I keep a stock buy list of the best companies and ETFs of specific industries or countries that I would like to own for long term growth. This gives me several important benefits. First, I’m ready to act when something causes the market, or a specific investment, to fall in price. Investors have a hard time putting into practice the principle of buying low and selling high. Having a buy list helps you stay disciplined to purchase bargains because you have already done your fundamental stock analysis and are looking for opportunities to buy low.
Another advantage of keeping a stock buy list is that it keeps you involved in the market. Market research and research of individual investments requires a great deal of time and should be done on a consistent basis.
Do you have trouble finding the time to do the necessary research to self direct your portfolio?
| AAAMP Blog by Ken Faulkenberry | |
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Ken Faulkenberry earned an MBA from the University of Southern California (USC) Marshall School of Business with an emphasis in investments. Ken has 25 years of investment experience and is dedicated to helping people with self-directed investment management through the Arbor Investment Planner. His asset allocation strategies have an outstanding performance record. |
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