How to Review the Fundamentals of Your Stocks
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How to Review the Fundamentals of Your Stocks
Just as you watch for unexpected changes in your mutual funds, watch even more closely for changes in your companies. Because mutual funds are collections of stocks, changes happen more slowly. But with individual stocks, things can shift quickly. You’ll need to monitor your stocks more closely and frequently than you monitor your mutual funds.
Things To Know
- With individual stocks, things can shift quickly.
- If a stock no longer clears most of your hurdles, it is a sell candidate.
Know your investment criteria first
You want your stocks to meet the same investment criteria today as they did when you first bought them. You set out your investment criteria in your investment policy statement, and you should hold your stocks to those criteria. If they no longer meet your criteria, do they still belong in your portfolio?
If you haven’t developed your investment criteria or created your investment policy statement, download Morningstar’s Investment Policy Statement worksheet.
Just because an investment no longer meets one of your criteria is no reason to sell it. But you should put it on your "to watch" list. And if a stock no longer clears most of your hurdles, it is a sell candidate.
Use alerts
You can monitor your portfolio with e-mail alerts, such as those offered by Morningstar and other online providers. Such alerts will notify you when there’s news about your stocks, if there’s a dividend paid or earnings announcement, and dozens more events.