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Stock Picking – Flowchart + Checklist

Introduction to Stock Picking

📈 Introduction to Stock Picking (Optional)

Only for investors who want to go beyond index funds and mutual funds.

🔁 Basic Flowchart: Should You Pick Stocks?

Want to beat market returns?
↓
Willing to study companies regularly?
↓
Comfortable with high risk and losses?
↓
If YES → Continue with stock picking
If NO → Stick to Index Funds & Mutual Funds

✅ Stock Picking Beginner Checklist

  • 📚 Learn basic financials (Revenue, Profit, EPS, P/E)
  • 📈 Study company’s past 5-year performance
  • 🔍 Read management commentary and future plans
  • 🏭 Understand the business model and sector
  • 💼 Avoid hype, focus on fundamentals
  • 📅 Hold long term (3–5+ years)
Note: Stock picking is not for everyone. It requires time, knowledge, and discipline. Mistakes can be costly.
🧠 Buffett Says: “If you don’t feel comfortable owning a stock for 10 years, don’t own it for 10 minutes.”
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