Kids Portfolio
Which stocks to buy
A well-known investment company manager once played a game. He asked school kids to create a portfolio of stocks. He then asked his investment professionals to create a portfolio and this would be compared to the kids portfolio performance. They used all their best skills to create a portfolio. after a year the 2 portfolios were compared. you know which portfolio performed better. The kids portfolio beat the professionals portfolio by multiple times.
Lesson learned. what did the kids buy.
They bought stocks of companies which they use or see on a daily basis. Thus, it is best to buy company stocks, the products which you use and know their products are good. you then have confidence in the company. once you have confidence in the company and you buy the same stock. the company's stock is likely to perform better.