Biggest Mistake: A Great Stock and a Great Investment Are Not the Same

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The following is an excerpt from Hello Harold, a book by Harold Evensky - click here for a free Kindle version!

“That’s a great stock; I think I’ll take a big position in my portfolio.” That’s how all too many investors make their investment decisions. Mistake, big mistake.

Randi: Hello, Harold.

Harold Evensky: Hi, Randi. What’s new in the accounting world?

R: Don’t ask. It seems like every time Congress passes a law simplifying the tax code, they add a thousand more pages to it.

HE: So what are you calling about? Do you want me to flex my lobbying muscles?

R: Actually, it has to do with the newsletter I edit for our professional accounting group. It’s our investment issue, and I can’t think of anyone more qualified to help me with it.