InvestorQ : Do good investors spend a lot of time researching stocks?
vaishnavi mhatre made post

Do good investors spend a lot of time researching stocks?

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Dilmini Mercia answered.
3 years ago
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One of the most critical out of the habits of highly successful investors is the ability to identify good stocks. It is not just about entering into a stock but also about timing your entry. Over the last 10 years, if you had bought into any of the downturns, your returns would have been substantially superior. Before you invest, understand the company, its business model, its core competition, and threats of disruption, check if the company has a moat and a margin of safety, focus on intangible assets etc. Successful investment strategies are all about identifying the right stock and entering at the right time. Focus on how best you can do it and don’t worry about catching the bottom and top of any stock. As Peter Lynch rightly put, there is a company behind every stock so try to understand what that company does and how it makes difference.
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