Basics

1) Stock prices are mostly efficiently priced, incorporating all known information about the company.
2) Based on the above, it makes no sense to attempt to buy "good" stocks and sell "bad" ones. It wastes energy and money, your money.
3) Portfolio development should be based on client objectives, temperament and financial resources.
4) There are 4 factors that determine investment success. Here they are.

A) asset allocation-how the portfolio is divided up between stocks, bonds, real estate and cash
B) diversification-a variety of securities in each of the asset classes above.
C) rebalancing-adjusting the portfolio to keep it allocated according to the plan we devise for you. Keeps one asset class from getting too fat while the other gets too lean.
D) advice-you need it. You can read why in the Commentary Posts.

There is a 5th factor which is essential, but doesn't involve the structure of the portfolio as in the 4 factors above. The 5th element is time. Investors are way too antsy. Good investment results take time.
As Warren Buffett is fond of saying, "You can't make a baby in one month by getting 9 women pregnant."