Invest no more than 5-10% of your capital in any one stock
In business today nobody can afford to have their success riding on any one company or industry. Don’t put all of your eggs in one basket is a good way to remember not to invest more than 10% in one stock. Remembering this rule [...]
1. Diversify
The expression, “don’t put all your eggs in one basket” is meaningful when it comes to investing. Don’t put all your money in one stock. Also, buy fixed income securities (i.e. bonds) and stocks. Don’t pick only one type of investment.
2. Do Your Homework
Obtain and analyze as much information as possible before making your [...]