If you are purchasing all of the stocks, then you will need to sell four stocks, and buy three. If you are following the 1/4 or 1/2 method, please check the appropriate column to see what needs to be bought/sold.
Goal: Find stocks using a value approach. A time frame of of 6 - 18 months is used in order to reduce churn (stockbroker commissions) and tax events (capital gains). Risk is reduced by finding companies with strong financials. Of those companies, only ones with growth potential (stock price goes up) are selected.
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