This guide is for investors who want to strike a balance between selecting a few high-quality stocks and a large number of good-quality stocks. Keep in mind that focusing on either quality or quantity is a sound investment objective, as successful investment strategies typically span both ends of the spectrum. It should be noted that the smaller the number of stocks that are in one’s investment strategy or intended portfolio, the longer the amount of time that should be spent assessing individual stocks. This is given the premise that not all investors have the luxury of time.
If an investor had an hour or two to assess a single stock, what should they focus on?
This will be the second article in the “How to invest if you have time constraints” series.
To recap, a 30-minute time allocation was discussed in the previous article in this series. 30 minutes is not the time an investor has daily to analyse stocks; rather, it is for a specific investment strategy that involves buying many stocks for one’s investment portfolio. The goal is to select many high-quality stocks for the portfolio, and it is for investors pursuing a strategy that prioritises quantity. Essentially, 30 minutes is the average time an investor should spend assessing a stock for their investment portfolio.
