When to Buy Different Types of Stocks
Any stock you buy should follow the same guidelines listed previously and the same pricing procedure detailed in Chapter 6. However, there are some differences in the types of stocks you buy and the timing of the purchases. Every investor needs to own a group of core stocks, which are large, market-leading household name stocks. Some investors satisfy this requirement with an investment in index mutual funds. Exchange traded funds that track major market indexes will work also. However, this is a book about investing in individual stocks, so I discuss this requirement in that context.