10 Commandments Of Long Term Investing (4 of 10)

Commandment IV: Avoid Blow-Up Equities Like The Plague - When investing in equities, ensure that your stock picking seeks to exclude the possibility that a single company could explode. Avoid companies that don't have clear corporate profiles, which can be vouched for. This is particularly important if you have a small, focused portfolio as one outlier can wreck your entire return.