Know What You Own

Take a look at your portfolio. Do you know what you own? Do you know what your companies are levered to -- what spending and investment cycles, what cost cycles, whether it be resin or oil or paper? Do you know what makes the businesses behind your stocks tick? Do you know what the crack spread is, if you own refiners? Do you know how much polyethylene your company may have to buy, or does it use PET?

If you don't, take a breath and then get to work finding it out.

Or sell those stocks. Because when they get knocked down -- and all stocks get knocked down -- you will sell, not buy more.

It's just human nature.

Random musings: While we're talking about researching stocks, a lot of people ask me to talk more about low-priced stocks. I've got to tell you what I tell them: If you're really serious about this group, you've got to sign up for Stocks Under $10. The team over there -- Will Gabrielski, David Peltier and Mike Comeau -- is always looking for, and finding, exciting names.

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