Let’s hope you don’t like to speculate too much as an investor. Instead, let’s hope you prefer to buy and hold and then occasionally take some risks every now and then with new technologies that come along.
You have a portfolio of six stocks. For the long-term, you hold five stocks: Exxon, Apple, Microsoft, JPMorgan, Johnson & Johnson, and Unilever...because they provide growth and income potential.
Then you speculate with two other positions in your portfolio. You buy and sell on a regular basis, trying to time the market or take advantage of market selloffs.
The first six stocks that we listed are your core holdings. These are central to your long-term portfolio, and you hold them over an extended period of time. The second group represents your secondary holdings, which are non-core, and are meant to try to outperform the market by a wider margin.
Core assets aren’t limited to stocks. They could include gold, S&P 500 index funds, even lumber if you’re so inclined. But the goal here is to beat the market and ensure long-term appreciation of your money.
Related or Semi-related Video
Finance: What are normalized earnings?5 Views
Finance allah shmoop what are normalized earnings All right this
is norm or it's supposed to be We just couldn't
get the licensing rights from him So this is our
public domain version of norm from cheers Sorry And this's
normal that's a bell curve Yeah you're in the ebola
abatement business Each year the government spends a few bucks
on you Just keep you alive Is a business in
case Well you know a few hundred million peoples faces
start melting off like you know that scene in indiana
jones you know the good ones so your earnings are
usually here and here and here and here a buck
a buck twelve twenty three twenty four years I'm like
that But then one year after miss malaria's high school
biology class takes a field trip to study monkeys bats
and beetle crap in caves in central ghana Well your
business picks up So this year when the gove is
having to spend a fortune on ebola abatement you were
nine dollars and forty two cents a share And since
world awareness has suddenly shot up the most popular yahoo
search term index that thing well next year you'll still
learn five seventeen to share even though most the ebola
is pretty much gone now But then things quiet down
in life goes back to normal where your earnings are
you know normal and you could plot some kind of
line through them And if someone asked you what normalized
earnings are in your little ebola abatement company well you
could say that your normalized earnings are in about a
buck twenty Well fortunately making out with the nigerian fruit
bat is not normal so you probably don't have to 00:01:40.539 --> [endTime] worry about contracting ebola Ooh
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