Stock Picking
Stock picking is the process of selecting individual stocks for investment based on various criteria, such as company performance, growth potential, valuation, or market trends. Investors or portfolio managers use a combination of fundamental analysis, technical analysis, and sometimes personal insight to choose stocks that they believe will outperform the market or their benchmark.
Example
A portfolio manager picks shares of a renewable energy company, believing that the company’s growth prospects and financials make it a good long-term investment.
Key points
• The process of selecting individual stocks for investment.
• Based on criteria like company performance, growth potential, or market trends.
• Uses fundamental and technical analysis for decision-making.