One way you can beat the market is by owning the best stocks. Another way is to avoid the biggest losers, play defense, and preserve capital by avoiding big losses. By avoiding chip stocks like Texas Instruments (TXN), we reduce risk in our portfolio and hold more dependable stocks.
The School of Hard Stocks Stock Education section.
The key to managing your portfolio is to understand what each individual stock is truly worth. In this chapter you will learn about ways to think what the stock is worth, compare it to what the stock is now selling for, and determine whether the stock should be higher, lower, or whether it is fairly valued. Featured stock Jos. A. Bank (JOSB).