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How to become a successful stock investor
By Daniel Reed

The key to becoming a successful stock investor is to know the difference between a great investment and a bad investment. Many investors assume that great companies are great investments, but this is not always an accurate assessment. Sometimes, a wonderful business can make a lousy investment.

Most stock investors can be classified into two investment styles: value and growth.

Value investors utilize an investment style that favors good companies at great prices over great companies at good prices. These investors use such valuation measures as price-to-book ratio, price-to-earnings ratio, and dividend yield to determine the attractiveness of an investment.
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Copyright 2010
 

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