As I was looking at my computer screen Wednesday afternoon, I was vividly reminded why investing is different then trading.
Trading creates profits; investing creates wealth.
With a "one-decision stock" you identify and hope to own for decades, not days... With a two decision stock you must buy and sell at the right price making the process that much more difficult.
I began to write about one-decision stocks in 2010, which identified several specific public companies as having business models and management teams with characteristics that are so strong that the thought of selling them need not enter your mind. Investors literally make one decision: buy and hold.
Happily, the methodically and formula continues to work.
Twenty-plus years of significant outperformance following the one-decision strategy has once again proved to be the recipe success over the long and short-term, and through unprecedented market volatility periods.Although, there is no such thing as a magic formula, and undoubtedly the years ahead will be difficult for both investors and traders, I continue to believe the likelihood of beating the market with a portfolio rich of one-decision stocks puts the advantage in your court.
Kaminsky’s On-Decision Stock Picks:Page 1 of 3 | Next Page