Topic: How To Invest

What is Pat’s commentary for the week of August 20, 2019

Article Excerpt

We based our Successful Investor investing system on fixed aspects of human nature. That’s why some of its key points apply beyond stock selection. One essential part of our system is that in your stock-picking, you should downplay or avoid stocks in the broker/media limelight. That’s because this limelight naturally tends to zero in on stocks that are of interest to brokers and/or the media. This heightened attention tends to spur buying of these stocks, particularly by active traders. It can balloon their prices up to risky and unjustifiable heights. You may still make money buying these stocks. But you face worse odds than you otherwise would, simply because the broker/media limelight has pushed up public expectations, and stock prices, beyond a reasonable level. We’ve offered Tesla Inc. (symbol TSLA) as an example. As a pioneer in electric cars, it has spent a lot of time in the limelight. Tesla’s stock has been volatile in the past five years as its sales have…