Stock Research
Homework Steps:
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Already know it?...
Just skip to any step:
THE KEY FACTS:
(quick snapshot... understanding your stock)
100   Stock ticker & Company Profile
110   Anatomy of a Stock - company snapshot
120   What the company does and how it makes its money
130   What Sector & Which Industry?
140   What Competitors?
150   Knowing The Share Price History
160   Knowing Number of Shares Outstanding
     
INTERNAL FACTORS:
(what the company controls)
200   Company Website
220   Annual Report (10K)
230   Latest Quarterly Report (10Q) & Other SEC Filings
240   Conference Calls
250   Earnings Guidance Provided
260   Insider Buying & Selling
270   Stock Splits
275   Secondary Offerings
280   Dividend & Yield
     
EXTERNAL FACTORS:
(what others control)
300   Analyst Ratings & Expectations
310   Major Holders
320   Major Index Membership
330   Short Position
340   News Headlines
350   Industry Events
     
KNOWING YOURSELF:
(what you can control)

400   Your Available Time
410   Age/Risk Tolerance
420   Don't Buy All At Once
430   Diversification
     
CHECK THE EXPERTS:
500   Jim Cramer's 25 Rules for Investing
510   Warren Buffett's Stock Portfolio
520   Business News - TV & Newspapers
530   Business News - Websites
540   Last check: Cramer's latest comments on MadMoneyRecap.com
     
TRADING RESOURCES:
600   Stocks 101: The Basics
610   Online Trading 101 (vs. paying a broker)
620   Anatomy Of A Stock:  The Parts
630   Mad Money Recap
640   Setting up your own free Yahoo! Finance Portfolio
650   Stock/Investing Glossary
     
ADVANCED TOPICS:
(coming soon)

700   Open Step
750   Open Step
790   Open Step
     
FREE HOMEWORK WORKBOOK CHECKLISTS:
800   Ongoing Weekly Homework for each of your stocks
WB   Free Stock Homework Workbook - PDF Download

 

 

 

 

 

 
 

Next Step:                                                                                                         Last updated:      
  430  Diversification                                                                                                   Share

Reading more, beyond the bottom line...
You control the diversification of your portfolio so that the market doesn't control you (as much as if you weren't diversified), and cause you to lose money!...   

Follow along with our Stock Homework   
free convenient workbook to get the most from this site!...   

 

Totally new to stocks?  Try starting
 with our Beginner Area: Stocks101...


Sometimes, stocks may be in multiple industry subcategories within a sector.  This may allow you to own a stock that is similar, and allowable, to another stock in your portfolio.  For example, American Express (AXP) is in the Financial Sector, but is considered to be in the subcategory industry, "Credit Services."  This is an example where AXP (and Visa and Mastercard as well) are so clearly defined as credit card providers that it may be permissible to own another Financial Sector stock, such as a bank or a loan company.

By the way, when it comes to the question of "How Many Stocks Should I Have in my Portfolio?"... 
Jim Cramer says: 
No more than 10... No fewer than 5...  Therefore, 5-10 stocks should make a good, diversified portfolio for the homegamer.

 

 

 

 
What you should find in this step:

 
Our Key Findings from this step (and where we found the information)...
In this step, we think it's most helpful to look at examples.  We think that Jim Cramer's Mad Money TV show's segment, "Am I Diversified?" provides great portfolio examples, where callers have provided five stocks that make up their portfolio, and Jim comments on whether or not it's diversified, and why. 

Here are direct links to these segments, on MadMoneyRecap.com, over several dates:
 
 

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