Diversification is a key tool for dealing with stock price volatility. Of course, the aim of the game is to pick stocks that do better than an index fund. Asia File Corporation Bhd. (KLSE:ASIAFLE) has done well over the last year, with the stock price up 23% beating the market return of 20% (not including
It is a pleasure to report that the Larvotto Resources Limited (ASX:LRV) is up 42% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. In fact, the price has declined 27% in a year, falling short of the returns you could get by investing in an
In order to justify the effort of selecting individual stocks, it’s worth striving to beat the returns from a market index fund. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. Unfortunately, that’s been the case for longer term Wilmar International Limited (SGX:F34) shareholders, since the
When we invest, we’re generally looking for stocks that outperform the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Siemens Aktiengesellschaft (ETR:SIE) shareholders have enjoyed a 65% share price rise over the last half decade, well in excess of the market
Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. For example, the Sandfire Resources Limited (ASX:SFR) share price is up 43% in the last 1 year, clearly besting the market return of around 6.3% (not including dividends). If it