Category: Fundamental Analysis
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How many stocks should an investor have in the portfolio ?
The number of stocks to have in a portfolio depends on several factors, including time horizon, risk appetite, diversification, and the investor’s knowledge, skills, and resources to manage their investments. While portfolio size depends on the appetite of the investor, studies suggest that owning between 8 to 15 stocks is an ideal range for most…
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How should retail investors use ROE analysis in stock investing ?
Investors, when analyzing stocks, should look at ROE analysis ( Return on Equity) as a key metric. ROE measures how well a company’s managers are growing profit as a percentage of the company’s overall net assets. It is calculated by dividing net income by shareholders’ equity. ROE = (Net Income / Shareholders’ Equity) x 100…