September 23, 2016

Don't know what stock to buy? Simply diversify! I’m buying Arkema

Today, there were several interesting stocks on the Top 10 List of the French SBF 120 Index. That’s why Obermatt CEO Dr. Hermann J. Stern had some difficulty selecting just one stock.

Over-analysis leads to indecision and prolongs the investment process. This is a problem. Investors who invest regularly have higher returns than the procrastinators. The reason is simple: They keep buying stocks even when prices are rock bottom.

What should you do? One possible answer comes from diversification, which is the principle that you should not put all your eggs in one basket, but instead work towards eventually owning twenty to thirty stocks. The reason is that diversified portfolios are safer than concentrated ones.

That’s why Dr. Stern analyzed his own portfolio with the Obermatt spreadsheet on Google Sheets (free here). This is how he discovered that he only owns one stock in the chemical industry. For that reason, he bought Arkema, a French Chemical Giant with a whole line of interesting products.

The principle of diversification made his decision easier and safer, without having to think much.

We buy the stocks we discuss and openly publish the returns of our portfolio. That's how much we believe in our stock research. Subscribe to the top 10 stocks for 100 markets conveniently by e-mail.

Get stock news now
Analysis drives Performance