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Subject:  Re: How to pick? Date:  7/5/2006  7:50 PM
Author:  ImpishLM Number:  1161 of 2443

If we are to follow the MF system, we have to pick NEW stocks every few months, so that after a year we own about 30 stocks.

I've been generating different lists to begin with by beginning with a different market cap. I haven't been as organized about this yet, but I've been thinking about making each quarter of the year a different cap size, so that my January buys and sells will be the smallest cap size (say), and the April buys and sells mid-caps. That way, I could generate the same MF list based on the exact same cap.... every Jan, look at the list for cap size 53, for example.

This is my first year using MF, and so my portfolio is about half and half MF picks and prior picks.... it's messy and confusing at the moment!

As to which stocks I choose from any list, I also run several companies through other tests I like (mostly from here at Fool), and other web sites' evaluation routines. If any stock passes several tests, I go with that one.

Greenblatt says that if you are in for the long haul, it shouldn't matter which stock you pick from the list, that is, picking 5-7 stocks randomly should work just as well over time. Still, I like to understand the business I'm buying, and my little research routines help reduce anxiety.

Hope this helps.

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