Don't pick stocks... But if you do...

99% of investors should not purchase individual stocks. If you want to own stocks, buy low-fee index funds.

Having said that… If you have the time and interest to try to pick individual stocks (and can afford to lose a lot… do this only as a hobby, not with your child’s college fund), I recommend you read a great book (with a lousy title) from Morningstar: The Five Rules For Successful Stock Investing. It’s a very solid primer on analyzing firms and their financial statements.

Posted by James on Sunday, March 01, 2009