In an average month or year, we look at a great many stocks. We conduct stock research on some for members of Pat McKeough’s Inner Circle, on request. We also come across and look at many others through our own reading and research. However, we add only a very tiny proportion of these stocks to those we analyze in our newsletters, for a couple of reasons.

(You get subscriptions to all 4 of our newsletters—The Successful Investor, Stock Pickers Digest, Wall Street Stock Forecaster and Canadian Wealth Advisor—when you become a member of Pat McKeough’s Inner Circle. Read on to learn more.)

Stock research: Separating the wheat from the chaff

First, stocks that are attractive enough for us to want to recommend them as buys are always a small minority. In fact, when we’re conducting stock research we reject many potential new recommendations out of hand. After all, it’s relatively easy to set up a company and sell stock in it to the public. All it takes is some capital, legal fees and input by stock-promotion consultants and brokers.

Promoters can launch a new company while it’s still living off that initial capital. (They can then add to the capital by selling stock in the company to the public.) Meanwhile, they can maintain investor interest with a string of press releases and other public-relations efforts.

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Start-ups and new issues are always highly risky. But even long-established companies can fail to thrive for years, while maintaining a seemingly healthy glow. As their business gradually loses momentum, they expose you to an ever-growing risk of loss.

In contrast, it’s much harder to set up and manage a business, and make it thrive over long periods. That’s why only a small minority of stocks are ever really suitable for serious, long-term investment.

Our stock research is always focused on investment quality

Second, even if a stock looks like it might thrive, we may still refrain from recommending it for a number of reasons. Our stock research may lead us to conclude that it presents too much risk of heavy loss if it fails to thrive. Or we may feel that stocks we already recommend offer better alternatives. Or we may simply prefer to hold off on a promising stock because we feel it has limited near-term potential. This can happen because it has been overhyped in the broker/media limelight, for instance.

In many cases, we watch the progress of these stocks-we-like-a-little. We may recommend buying them months or even years later, but only after seeing favourable developments and signs of progress.

Let my stock research help you zero in on high-quality stocks—and avoid the ones that could put your portfolio at risk

When you become a member of my Inner Circle service, you always have access to me and my investment team. Whether you’re looking for investment strategy or a trusted second opinion on whether you should buy, hold—or sell—a specific stock, my trusted advice is always a mouse click away.

In addition, you’ll not only receive the answers to your questions, but you’ll also get to see all other members’ questions, and our answers (of course, we eliminate any personal information).

Even if you don’t ask questions yourself, you’ll be surprised at what you can pick up by reading answers to questions posed by other investors just like you.

And that’s not all. You also get subscriptions to all 4 of my newsletters, The Successful Investor, Stock Pickers Digest, Wall Street Stock Forecaster and Canadian Wealth Advisor.

I urge you not to miss this opportunity. Give yourself an advantage over other investors and join my Inner Circle today. Click here to learn how.