"Stock selection" refers to the process of choosing specific stocks or investments from a variety of options, based on certain criteria or preferences.
Full definition
This list just looks at the two main types
of stock selection strategies: fundamental and technical.
To demonstrate our research integrated investment strategy, we would like to provide you some insight into our analytical
stock selection process.
I'm not talking about buy - and - hold or diversification, but really what people look for
in stock selection.
From our standpoint, investment managers with a longer - term view and a focus
on stock selection can find abundant investment opportunities.
Last week brought yet another indication that 2014 is proving to be a very difficult environment for active
stock selection strategies.
First and foremost, our portfolio construction discipline is grounded in bottom -
up stock selection as the key driver of results and avoiding unintended systematic biases.
If there is confirmation bias in the selection of
stock selection criteria then forward testing would help detect this bias.
Additionally, market correlations have declined substantially, creating greater opportunity to differentiate between markets and focus on
individual stock selection.
To capture the full benefit of
stock selection skill, portfolios are invested for the long term, on a conviction - weighted basis, in a concentrated set of best - idea investments.
The biggest reason we performed well last year was
good stock selection in the consumer discretionary and financial services sectors.
I think that this is especially relevant at this time because many investors will tend to confuse their good efforts at
stock selection with the general returns delivered in a bull market.
It's a pretty good guide on dividend investing and includes everything
from stock selection to diversification to taxes.
For most managers this tax - related return drag often exceeded the value added by
active stock selection and timing.
This investing rather than trading mentality will reduce workload managing investments but is contingent on making good
stock selection decisions to begin with.
The largest contributor was the energy sector,
where stock selection drove returns across a range of holdings, particularly within our Canadian and European holdings.
The idea is to
limit stock selection to those that have higher odds of making an explosive run over a short period of time.
Stock selection within financial services was particularly strong this month, with the consumer lending, diversified banks, and insurance industries driving the returns.
If stock selection can't add value, then concentrating into a smaller number of holdings won't increase expected return, but it will increase risk.
The point is that some
years stock selection is a futile effort, while other times it can be a endeavor worth pursuing.
Thus, perhaps, like all sectors having demand growth potential, it ultimately boils down to
proper stock selection.
This contrarian approach to
stock selection allows us to allocate capital to companies that may be out of favor with the market, but poised for recovery.
While writing this newsletter (book), I tried to integrate many other useful educational components in addition to
providing stock selections organized into portfolios.
As such, it should be impossible to outperform the overall stock market through
expert stock selection or market timing.
While I'm happy to
acknowledge stock selection may (ultimately) be art, here I'm going to illustrate & argue why it should be mostly grounded in science.
Stock selection involves consideration of price appreciation potential, risk / return characteristics and other factors.
Phrases with «stock selection»