So you've finally decided to start investing . You already know that a low P/E ratio is generally better than a high P/E ratio, that a company with a lot of cash on its balance sheet is superior to one burdened with debt, and that analysts' recommendations should always be taken with a grain of salt. And you know the cardinal rule of the smart investor: A portfolio should be diversified across multiple sectors. That pretty much covers the basics, whether or not you've waded through the more complicated concepts of technical analysis . You are ready to pick stocks. But wait! With tens of thousands of stocks to choose from, how do you go about selecting a few worth buying? Whatever some experts suggest, it's just not possible to comb through every balance sheet to identify companies that have a favorable net debt position and are improving their net margins. KEY TAKEAWAYS Decide what you want your portfolio to achieve, and stick with it. Pick an industry that interests...
