Targeting Business and Stock Segments-Part 2 of 5

Large financial institutions typically retain domain specialists at enormous sums of money. It is the same with business channels on television. You cannot substitute experience when it comes to obtaining an insider view of an industry or a sector, in a legal way.

Specialization need not involve big bucks. The Internal Revenue Service of the United States encourages the formation of investment clubs. The latter enjoy fiscal benefits if they run as trusts. You can form an investment club wherever you live. You can enjoy specialization benefits whether or not your tax authorities encourage this.

A common error is to ask for free or casual advice. Most domain experts will exercise their minds only if they are held accountable for their opinions. They may also voice misleading ideas with selfish angles. Specialization will work on a professional plane for targeting only if the advisor has a stake in the action he or she recommends.

A compromise approach to specialization for targeting is to limit your portfolio to the industry which you know best. This works well for loners, who enter a stock exchange only after decades of service in a single segment. However, one head is rarely better than at least two.

Do post below if you are an authority in at least one segment of the world economy. You can also mail

StockWay.MyView@gmail.com

Let us turn to standards tomorrow.