Friday, November 18, 2011

Pick Man like Picking Stock

Dear ML,

I just read a very interesting analogy from a column author that I like. I think she is in late 20s, Chinese, working in Wall Street now.

Today she wrote about pick man like picking a stock: 

- Do not pick those that are backed by national policy. They are too well taken care off, they cannot take care of themselves.

- Do not pick those with high PE ratio. They already got a bunch of faithful stockholders, cost is too high, ordinary girl cannot afford to buy.

- Do not pick those that are from heirs: they are not motivated to grow, spending time with them is wasting your time.

- Do not pick those that are from highly volatile and manipulative by brokers (aka players): there is no way to beat them and we can only get hurt eventually.

What can we choose then? A growth stock, which may be available 1 out of 1000.

Question is how to pick growth stock?

I think it boils down to 3 principles
- do your homework
- trial and error
- learn from mistakes


k   xoxo

2 comments:

  1. Hi K -Funny post! Thanks for sharing. I think the 3 principles are so key! Sometimes I'm too hard on myself for 'being the fool' in a relationship... when the truth is, I was brave - I took a risk, I put myself out there, I got hurt...but I'm still standing. So though my pride may be hurt, I'm still the winner in this scenario. I know a little bit more about what I want and a little bit more about what I deserve...and a little bit more about what is out there and what to watch out for! That is new to me...

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