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The Postmortem is Part of the Investing Process

What do Apple (AAPL), Starbucks (SBUX), Ford (F) and General Electric (GE) all have in common?

Their businesses are built on churning out thousands and thousands of products each and every week. To be successful, they have to deliver products that meet or beat consumer expectations time and time again.

What those three companies have in common with most other successful companies — from industrial manufacturing to online retailers like Zappos — is a well-oiled process.

Not to get all “text bookie” on you, but a process is a series of actions or steps taken to achieve a particular end. The same can be said about investing — from all of the thousands and thousands of individual stocks, exchange-traded funds (ETFs), mutual funds, call and put options and more. You want to zero in on those that will generate the biggest profits with the least risk over a given period of time. To do it once or twice, you may get lucky. But to be successful for the long term, it means having a process in place.

You don’t want to be a “one-and-done” investor who continues to bask in the glow of one great trade. No, you want to be a serial investor who continues to get on base with, to use the baseball analogy, a number of singles and doubles. We won’t turn down the stand-up triple or even a home run, but at the heart of it we want to get on base as many times as possible without striking out. You have to refine your swing, and that means perfecting the process. It works for batting, and it works for investing.

Read more about how “postmortem analysis” can improve your investment process at Eagle Daily Investor.

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archive

The Postmortem is Part of the Investing Process

You donâ??t want to be a â??one-and-doneâ?ť investor who continues to bask in the glow of one great trade.

What do Apple (AAPL), Starbucks (SBUX), Ford (F) and General Electric (GE) all have in common?

Their businesses are built on churning out thousands and thousands of products each and every week. To be successful, they have to deliver products that meet or beat consumer expectations time and time again.

What those three companies have in common with most other successful companies — from industrial manufacturing to online retailers like Zappos — is a well-oiled process.

Not to get all â??text bookieâ?ť on you, but a process is a series of actions or steps taken to achieve a particular end. The same can be said about investing — from all of the thousands and thousands of individual stocks, exchange-traded funds (ETFs), mutual funds, call and put options and more. You want to zero in on those that will generate the biggest profits with the least risk over a given period of time. To do it once or twice, you may get lucky. But to be successful for the long term, it means having a process in place.

You donâ??t want to be a â??one-and-doneâ?ť investor who continues to bask in the glow of one great trade. No, you want to be a serial investor who continues to get on base with, to use the baseball analogy, a number of singles and doubles. We wonâ??t turn down the stand-up triple or even a home run, but at the heart of it we want to get on base as many times as possible without striking out. You have to refine your swing, and that means perfecting the process. It works for batting, and it works for investing.

Read more about how “postmortem analysis” can improve your investment process at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Chris Versace is a financial columnist and equity analyst with more than 18 years of experience in the investment industry. He has been ranked an All Star Analyst by Zacks Investment Research and his efforts in analyzing industries, companies and equity securities have been recognized by both Institutional Investor and Thomson Reutersâ?? StarMine Monitor. Heâ??s frequently published in The Washington Times and is a frequent contributor to the daily radio show â??Americaâ??s Morning Newsâ?ť and â??Americaâ??s Radio Newsâ?ť. He has been quoted in the Wall Street Journal, Investorâ??s Business Daily, The Street, USA Today and other publications. In addition, he can be frequently seen on televisionâ??s â??Fox Businessâ?ť show.

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