Joy Of The Big Cap Stock – How Just Minutes Can Save My Capital From A Stock Collapse

Last week I wrote an article on Procter and Gamble Stock (PG Stock) explaining why I stay with big cap stocks like PG Stock. That article can be reviewed through this link. While the stock market may appear to be filled with big cap stocks to choose from, many do not actually fit the criteria I lay out for my stocks. While Procter and Gamble does, a stock such as Citigroup does not. My article on Procter and Gamble Stock (PG Stock) touched a lot of investors and I received many emails with questions but one investor posted a question on the Disqus discussion. My answer touches on the basis of understanding the criteria I use for stock selection and I felt it would, perhaps, be of value to other investors to understand how I judge stocks and why I have been fortunate to avoid most stock collapses including Citigroup stock in 2008.

Let’s start with the investor’s questions and then look at the answers. My additions to his question are in brackets.

Investor Question On Why I Would Never Choose Citigroup Stock

“Thanks Teddi, for this great strategy discussion (on Procter and Gamble Stock (PG Stock)). But why is this (Procter and Gamble Stock) different from Big Cap Stock Citigroup Inc. (C) which dropped more than 90% from May 2007, and will be very hard to recover to any investor that sold puts, or (is still) hold(ing) shares (from) in 2007. From Eric”

The Criteria For Risking My Capital

The differences between Citigroup Stock and stocks like Procter and Gamble Stock are stark and obvious once you understand what to look at.

When comparing the criteria by which I select Procter and Gamble Stock, Johnson and Johnson Stock or even Coca Cola Stock versus Citigroup Stock, it becomes easy to understand the difference.

Become A Better Investor – Strategy Article

This strategy article looks at understanding one of the most basic components of investing, stock selection and capital preservation. This strategy article is 2500 words in length and will require 14 pages if printed.

FullyInformed USA Members can can review this strategy article directly through this link or they can sign in to the full USA members site here. Non-members can join here or read about the benefits of being a member.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.