The 2 Minute Drill:―
To further improve your chances of a profitable selection, Lynch in his book One Up On Wall Street has suggested a 2-minute drill that he thinks every investor should follow before parting with their money.
He suggests having the following monologue with yourself.
2 Minute Drill:―
Before buying a stock, I would like to be able to give a two-minute monologue that covers:―
1. The reasons I’m interested in this company,
2. What has to happen for the company to succeed, and
3. The pitfalls that stand in its path.
If your very own answers to the above 3 questions satisfy you, you are good to go ahead with the chosen firm.
The drill acts as a safety barrier by limiting the role of emotions in your investment decisions.
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Happy Investing!
Signing off with my favorite words.
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