"There is no recommended stock" why a column is published on Toyo Keizai ONLINE

Good morning, this is Matsushita.

The other day, during a break in a business meeting,

I was jokingly asked,

“Please tell me which stocks you would recommend right now.”

Because I do this kind of work,

people say things like this quite casually.

However, every time, I explain,

“Buying recommended stocks to make a quick profit is not that simple.”

and so on.

Those who do not know real stock investing

believe that making profits in stock investment is

a simple matter of buying good stocks and selling when they rise.

In reality, though,

the process to get there and the daily tasks involved

are not simple at all.

The reason there are no “recommended stocks” is

that profitable stocks come with an accompanying strategy

(an investment policy, so to speak).

Only when there is a strategic premise

can profitable stocks be chosen.

However, beginner investors and people who don’t know investing

think that if they buy a recommended stock they’ll profit.

Because of that, these people will never make money in stocks.

I know this, so in such cases

I explain politely, saying

“There is no such thing as a recommended stock.”

After hearing the details,

the other person is convinced, but

they seem a little disappointed.

You, too, please take a step forward from the easy idea of

“a recommended stock.”

First, there must be a strategy,

and then profitable stocks are selected on that basis.

Moreover, even after you buy,

the scenario is always changing.

That is stock investing,

and that is how you generate profits.