I buy and hold stocks that I perceive to have the potential for very large percentage gains (over 30% per year). I invest in companies that have years of good growth ahead and lack effective competition. Because I have a small portfolio, I hold very few stocks and am not diversified, but with other portfolios I may be more conservative and diversified. I invest only in stocks I understand well and as an individual investor with only 6 years experience I feel it is too hard to adequately understand and continue to follow multiple unrelated sectors. My current sectors of choice are the internet ...
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In 2002, during the height of the bear market, I was concerned about the performance of my mother's investment portfolio and managed to convince her to let me clean out it out. After a brief period of holding blue-chips and oil companies I bought into mostly gold mining companies. Making some accurate investment and macro-economic decisions while following the stock picks of an investment newsletter writer (Steven Saville) gave me great returns and thus the confidence to want to continue and to improve. As I began to move away from mining equities and make my own stock choices I was protected ...
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