For many investors, after a day working at their job and spending time with the family, there is little time left to do research or analysis on investments for their stock portfolio. So, while some do find time to pore through financial statements, many others look to what the professional fund managers are investing in to find ideas for their own investments. This is usually not a bad strategy as professional fund managers are paid very well to find winning stocks.
While many will only follow a few of their favorite investors like Warren Buffett and try to mimic their portfolio, I believe the better approach is to look for companies that are commonly held in many of the top fund manager's portfolios. By doing so, you are able to narrow down the list of stocks to ones that have a general consensus of being a solid stock to own, and this gives investors a small manageable list of stocks that is practical to invest in.
Source: Investopedia
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Posted by D4L | Friday, August 05, 2011 | ArticleLinks | 0 comments »________________________________________________________________
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