Nevertheless, strategy has become a buzz word in the Business Management world.
You can use strategy to pick top stocks.
Strategy, whether in the battle-field or in business, is a process. It is only rarely a sudden brain-wave. Strategy is best crafted by process.
The first step in crafting business strategy for a management team is to scan the environment.
Large corporations use specialists for Environment Scanning. Amateurs go through this process in their heads.
Systematic and effective Environment Scanning need not cost you big bucks.
You can start the process today and use Environment
Scanning to improve the stock basket in your portfolio.
Start with countries. Are all your investments in stock exchanges from the country where you live? Consider stock markets in the European Union: the Eur o is currently one of the best-managed currencies around.
The financial sector has sullied the name of stock markets in the United States. However, NASDAQ has some exceptional Technology stocks. AM EX continues to be a world leader in commodities, especially farm produce and livestock.
All BRIC countries deserve serious consideration. Take a look at:
http://www.stockmarkets.com/blog/new-kids-on-the-stock-market-block
You can turn to Sectors once you have scanned countries for your stock mix.
Please come back tomorrow for tips on Environmental Scanning for Sectors.
Send an email to
stockway.myview@gmail.com
or post below if you would like more information on stock investing in a particular country.Have a restful Sunday.
2 comments:
An honest submission: I read the post “ Brand and stock values” earlier than this post. In my comment there in the post mentioned as read earlier, I had mentioned therein that I was looking forward to a strategy how to trade a branded stock especially when you are caught unawares of the Business Environment, adversely affecting the business sentiment. Do you hold patiently? Or do you trigger stop loss and re-enter when the business environment is favourable. I am not able to find any solution to my problem in this post
I appreciate your feedback about the post. I will try and improve my writing.
Now with regard to your question about branding and stock picks in a volatile market: there are a number of ways to measure brand values. I can write and elaborate them if you wish.
Pick stocks with strong brands. The reverse is equally true. Remember that branding can change over time. Some of this is because of changes in marketing policies. The rest is uncontrollable because segments and clusters change.
Nestle, Novartis, and Unilever are classic examples of world stocks with decades of successful brands.
Does this help?
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