Never rush to buy a stock

Each stock you buy has to go over different virtual portfolios. For example I have three virtual portfolios:

1. Interesting to read about: Whenever I see some article about a good stock or come to know about a value investor talking/buying a stock.

2. InitialChecklist: These stocks have passed some of the initial filters but study is still ongoing.

3. FinalBuyAtSetPrice: Portfolio of stocks which can be bought if possible try to wait for the set price or you can buy at current price also if you wish for as these are great stocks.

4. GoodManagementSeeIfDown: These are some stocks which are really – really good but very costly. It is very rare that I will be able to buy these stocks but just keeping it in this list in hope that someday some bad thing happen and I jump into it. Basically I have studied these companies and found them to be great but at current price it is too costly.

So, never buy any stock which is not in the specified watchlist.

First stock has to come to your watchlist before coming to portfolio


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