Objectives
The objective of stock selection criteria is to: (1) maximize the total return on investment (appreciation plus any dividends received) for the targeted holding period (2) limit risk (according to an individual's risks tolerance levels) (3) maintain an appropriate degree of portfolio diversification.
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“Along the journey we commonly forget its goal. Almost every vocation is chosen and entered upon as a means to a purpose but is ultimately continued as a final purpose in itself. Forgetting our objectives is the most frequent stupidity in which we indulge ourselves.”
—Friedrich Nietzsche (1844–1900)