Solin’s Rule For Picking Stock “Winners”

https://vimeo.com/380021191

Here’s myrule for picking stock “winners”:

Don’ttry.

Don’t listento anyone who says they can identify the next Facebook.

The odds arestacked against you.

Over the longterm, a relatively small percentage of stocks (around 20%) account for almostall gains in the domestic market.

You haveabout a 40% chance of picking a “loser.”

The chance ofa “big score” is about the same as the possibility of a huge loss.

There’s abetter way.

Buy alow-cost index fund that tracks the S&P 500 index or the Russell 3000index.

Historicalannualized returns for these funds are around 10%.

That’s a“winning” strategy.

The next timeyour broker recommends you buy an individual stock, just say this:

I followSolin’s Rule. Idon’t want to try.