Stocks Intermediate: 20 Stock-Investing Tips

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1.
If a company you are investing in reports a nice big surprise, what can you expect?
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There will be more surprises. Its not a sure thing, but you can expect more surprises, as there is likely to be a trend going on.
2.
Which of the following should you tune out?
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A prediction on television about where the market will be next year. You should tune out the noise, which includes short-term predictions made by others concerning things that cant be predicted.
3.
The stock of a company that is in great shape financially will always be priced accurately.
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False. Though that is the ideal, a stocks price is sometimes higher or lower than what is accurate (that is, what its book value is).
4.
All else equal, you should be most interested in buying _______.
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A wide-moat company with mediocre management. Remember, the economics of a business usually trumps the competence of management.
5.
What sort of expectation should a stock investor have regarding success?
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Success should be something you are willing to wait for. Even though stocks have historically returned in the 10% range, you must still have patience when investing in them. If you expect to get rich quickly, you will most likely be disappointed, and you may find yourself drawn to speculating, which is very volatile.