Stocks Intermediate: 20 Stock-Investing Tips

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1.
A good investor ______.
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Is willing to go against the crowd. The crowd is often -- but not always -- wrong.
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.
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.
4.
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.
5.
The future is unpredictable. But you can protect yourself against unpredictability by having a margin of safety built into a stock that you buy.
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True. A margin of safety -- for example, paying less for a stock than its book value -- can dampen the effect of the futures unpredictability.