Key Points
Heres the most common advice given to equity investors: Invest in good stocks, monitor these closely, and hold for years..
As he says, within your investable universe, you can start by choosing the companies that are good, or you can start by choosing the companies that are bad..
The key point is that its very difficult to choose between good and good, but its easy to choose between good and bad..
You need to look at dozens of factors to decide whether a company is worth investing in, but even one or two strong negative points are enough to decide that you must not invest in the company no matter how positive the rest of the factors are...
In the world of stock trading, the golden rule every investor lives by is to only invest in what they perceive as good stocks..
