There are about 16,000 publicly owned companies in the U.S. for you to select from. There are also about 3 times this number (48,000) of publicly owned companies in the other countries for you to select from too.
With so many companies, of course, some are much better candidates for your consideration than others.
Of these companies, fewer than 2% are likely to make the cut so far as your quality standards are concerned.
And perhaps, only 5% of THOSE might be available at the right price at any given time- and even this could be an overestimate.
Illustration:
1000 stocks
Only 20 are quality stocks (20/1000 = 2%)
Of these 20 quality stocks, only 1 is available at the right price at any given time, if at all. (1/20 = 5%)
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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