Stock picking,next 5 years

  1. 5,447 Posts.
    Picking stocks in the coming years you only need two words to guide you......reality and necessity.
    Reality means'does the business really exist,is business really being done,are sales being made,work carried out'.
    Necessity is 'is the business an essential part of our daily lives or could it be done without in hard times'.The necessity value of a business could mean a reduction in size of 90%,and a reality failure could mean the complete disappearance.Protection of your capital will be of utmost importance in the years ahead and picking stocks that can do that will be very difficult.Unlisted businesses may become popular as they are closer to the real world and it is possible to be more fleet footed to change the business to suit conditions.Packer has at times re-privatised his company to give him an edge and keep away from scrutiny.
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