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How do I make the transition to stock investor from being a mutual fund investor?

I too am frustrated with some of the limitations of mutual funds, especially index funds that ended up investing in banks, mortgage companies, and auto companies when we knew they were all headed for disaster. And this went on for almost two years.

My way is this: Any list of stocks can easily be sorted into those doing well and with good prospects, those doing poorly and not ready to recover, and the uncertain ones in the center. My way is simply to buy group one stocks. (You won't always be right, but then you sell the misses and buy something better. You can win this way most of the time and usually beat the indexes.)

You can do this with any list of stocks. The Dow Jones, the S&P, or any group you choose. This works for me. You can look at my CAPs portfolio to find the ones I like.
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