Wednesday, January 2, 2008

The real mojo behind picking stocks in the stock market?

Hello another day in 2008 so what have you done so far. Nothing ! Okay well I understand that since it is the only the second day of the year. Well since 2007 I have always received numerous question on what are the best stocks to invest in and I gave a couple recommendations such as; Apple,Microsoft,Google, and Aol time warner since the company has acquired so many web companies such as Weblogs Inc and Myspace. Well if you are going to create a portfolio I believe you would need a little bit more diversification than that. I only named Tech stocks which are usually the Nasdaq way of investing.So here is the big secret make sure you don't tell everyone.

I am just playing make sure you share this idea with everyone you know. Well the secret is common sense in a lot ways so here it is invest in products that you use on a constant basis. See sounds simple because if you using a product everyday and think it is very helpful ,that means usually that their other people who think like you. I acquired this tip a while ago from an audio book called the buffetology by Warren Buffet. In this book Warren Buffet was teaching his grand children on how to pick good stocks. So he showed them products such as Coca Cola and Mc Donald's to invest in because they consume those products on a constant basis. Believe or not those kids probably had greater returns on investment than some Wall Street analysis.

So, all in all forget about some of those hot tips unless you are a trader or you have an adequate cash reserve. Invest for the long term by building it with products you actually use on a daily basis and make sure they are products that are in different product categories so your portfolio has some diversified value.


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