The Business Management Way of Segmentation for Top Stock Picks

Segmentation joins business management and stock investment.

A comment on yesterday's post points to the need to separate segmentation for a portfolio from the same process for individual stock picks.

Similarly, a business manager has to distinguish segmentation for brand development from the same process for a horizontal integration decision.

Everyone segments, at least in casual manner. Misunderstandings arise when each member of a team segments in his or her mind. We may forget or get confused even if we segment alone in our minds.

Formal segmentation is written. It stays on record. This is a major advantage of professional segmentation.

It is time for an example.

Yesterday's post has a comment on conventional segmentation for a stock portfolio.

Tomorrow, we will dwell on other approaches to segmentation between countries, and within a single stock exchange.