To make the right stock purchasing decision
To make the right stock purchasing decision, it is important to look at the earning capacity of a company and if this looks bright, then you can purchase their stocks. You should not go by stock prices which tend to give false impressions about the company and will not allow you to accurately assess how well a company is performing. Also, if you find some stocks have turned out to be duds, then you must get rid of them as soon as possible and only hand on to those stocks that are continually growing. If you have erred in buying a stock like aig stock price, you must be ready to admit that you made a mistake and you should then get rid of that stock.
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