Stocks Intermediate: 20 Stock-Investing Tips

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1.
Being a stubborn investor will always pay off.
Choose wisely. There is only one correct answer.
False. Often, being stubborn will lead to losses. If youre holding a stock whose company is foundering, it may not be wise to hold onto it.
2.
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.
3.
Which of the following activities is most likely to improve your investing skills?
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Reading one of your companys annual reports. Reading annual reports will help you know more about your companies, which will make you a better investor. By constantly looking at unrealized capital gains, you may be anchoring on an irrelevant data point--the price you paid--concerning the future value of a stock.
4.
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.
5.
A good investor ______.
Choose wisely. There is only one correct answer.
Is willing to go against the crowd. The crowd is often -- but not always -- wrong.