There is a lot of evidence that most investors do not do well in the stock market. However, this is not true of businesses. Most companies do make money or they would not stay around. Some companies are rather cyclical in their profit making, but overall do make a profit.
I think that if most investors had picked a few good companies and stuck with them they would probably have done just fine. Most companies on the TSX have been around for a while and most have been making money.
I think that it is best to pick companies that pay dividends as this tends to substantiate that profits are being made. You do not need to make brilliant choices, just companies that can endure.
On my other blog I am today writing about Badger Daylighting Ltd (TSX-BAD, OTC-BADFF)...continue...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Hi Susan,
ReplyDeleteI totally agree with your comment about investing in a few good companies which is why I follow your blog. Your insight is always helpful and educational.
I was wondering what your views are regarding the weight of each stock in a portfolio? I have seen some people recommending a maximum weight of 10% while others feel 5% is safer.What weighting do you use in your own portfolio?
Regards,
Marypat
I started to answer this and realized that it is not as simple as it might appear. It will try to answer next week.
DeleteSusan