The secret to stock picking is to:
A) pick one stock and hold it for a long time.
B) invest in a large basket of stocks from different sectors of the economy.
C) invest in stocks held by Berkshire-Hathaway.
D) invest in stocks from companies that sell green technologies.

Question

Quizplus · Accepted Answer

Investing in a large basket of stocks from different sectors of the economy helps to diversify your portfolio, reducing the impact of a single company's poor performance on your overall investment. This strategy helps to manage risk and increase the chance of long-term success. Option A could be risky as holding one stock for a long time could be risky due to the possibility of a significant decline in value. Option C is limiting as it only provides exposure to stocks held by one company. Option D is too specific as it focuses only on green technology stocks, which may not necessarily perform well in the long-term.

The Secret to Stock Picking Is To