## Blogs I follow

• - The past month has been difficult for many investors. It is during times like these that you see who really is a long-term investor, and who is just a pret...
13 hours ago
• - As a long-term investor in Walmart, I have seen many ups and downs of the stock in recent years. Today's sell-off will not change my attitude in this great...
17 hours ago
• - Save, invest, prosper with My Own Advisor. What you need to know about life insurance in 2018, otherwise it might cost you How much life insurance should...
1 day ago
• - You know that feeling when you are starting on a new goal and you see someone else in a similar situation having much more success than you? Maybe it cau...
1 day ago
• - Sorry for the delay. It's past time for my January dividend update! For the month I was able to earn $416.77 in dividend income! This is a healthy incr... 2 days ago • - Koho is a Canadian spending and saving app that gives you insights into your spending behavior while helping you meet your financial goals. This review i... 3 days ago • - The seventh stop on our nine week summer vacation across Europe brought us to Ljubljana, Slovenia. If you've never heard of Ljubljana or Slovenia, then yo... 3 days ago • - Its time for me to post dividend income earned from my portfolios: DIP, & Roth. I enjoy sharing them as these passive dividend income provides me great ins... 4 days ago • - Reading Time: 9 minutesIf you blinked, you missed January, as it was gone in a blink of an eye (at least for me). I hope that 2018 is off to a good start... 5 days ago • - Below is a recap of the dividends/partnership distributions that we received from our family's dividend stocks portfolio – * JANUARY 2018 (recap).* DIVI... 1 week ago • - Hey everyone! How is it going? I can’t believe that it has been almost 5 months since my last post! I’ve sort of been side tracked playing the online mar... 1 week ago • - If you’ve ever gotten a gift card to a store you don’t usually shop at, you know that it can be a challenge to figure out what to do. Should you buy some... 4 months ago • - April is financial literacy month. But I don't think I have anything new to teach you. That's sort of why I've stopped writing, I felt like I was preaching... 10 months ago • - It has been quite a while since I posted last. So much going on, and just so little time. Lit’s of things have been happening. My daughter has won many bea... 1 year ago • - Hi everyone, I hope everyone had a great week! I'm ready to spend the weekend relaxing and maybe catching a movie with the wife. As far as an update, I h... 1 year ago • - Stock stalking is a weird hobby. In general I do not "follow" any particular investor's activities. However, there are a couple that I have followed of so... 1 year ago • - Two Purchases for January 2016 (Amgen and 3M) During the month, I made another purchase of Amgen (AMGN). It seemed to be a good time to buy and it starts ... 2 years ago • - I find myself in a position to make a deal with the devil that could substantially increase my annual day job salary starting in 2016. More cash means mo... 2 years ago • - Well, here comes my second sell. This one was a long time coming, and I held on far too long. *On 4/7/15, I sold 34 shares of CAG for$38.14 per share. Thi...
2 years ago
• - Para fazer intraday, além da análise técnica, podemos e devemos tomar atenção ao calendário económico e de preferência ao minuto, aqui vamos seguir todas a...
2 years ago

## Wednesday, January 14, 2015

### Picking the right stocks is important

Today I came across this study and it has some data that confirm what the stock market is for informed traders/investors and for most people who doesn't understand the market and run away from them.

Stock picking

The way I look at the market, is obvious that we must choose profitable companies to invest in.

This is not for all investors, but for me it is how it works. I don't want to own a company that doesn't make a profit at the end of the year.

The study I mentioned above analise the Russel 3000 between 1983 and 2006 shows that, in this period:

• 2 out of 5 stocks were unprofitable investments;
• 1 out of 5 stocks lost at least 75% of their value
• 2 out of 3 stocks underperformed the Russell 3000
• 1 out of 4 stocks were responsible for all of the market’s gains
This means we have to look at a portfolio and see if our stocks are profitable, with increasing earnings and with good margins. If we do this, I believe we can profit from the market, and grow our wealth in the future.