Focus on Fundamentals
Regardless of what type of portfolio you build or investor you become, all investors need to remember to do one thing: focus on the fundamentals. Unless you choose to invest in companies that have a solid foundation and room left to grow, you won’t be making money in the long run.
Research the companies you’re considering putting money into. Are they well-established businesses? Does the stock have a history of performing well? What are analysts saying about the position? These are just a few things to consider when picking stocks. Focusing on the details that define a company and stock’s fundamental strength is an easy thing for investors to do, but many don’t take the time to do so. And the lack of due diligence is often detrimental to their investments.
If you’re looking for a way to test your portfolio’s fundamental strength, I suggest you start using Portfolio Grader today. It analyzes a stock’s fundamental strength and takes into consideration eight different metrics, including sales and earnings information — assigning “grades” telling what kind of buys or sells they are.