Principles an Investor Needs to Know:
- Economic indicators and their impact on the market.
- Understanding how to read financial statements.
- Knowing the meanings of earnings multiples and calculating ratios.
Main Objectives of Stocks:
- Capital gains.
- Receiving cash dividends.
- Saving in the stock market.
Key Rules for Portfolio Construction:
- Diversifying the stocks in the portfolio.
- Diversifying stocks is not about increasing their number, but about diversifying sectors.
Principles for Stock Selection:
- Thorough knowledge of the company.
- Studying the type of sector.
- Assessing the efficiency of company management.
Importance of Portfolio Review:
Investors should review their portfolio regularly, at least quarterly.