Rely on the Numbers

I spent some time this morning thinking about the idea of relying on just the numbers and ignoring the constant strange news flow that is dominating the daily gyrations of the stock market. I have learned to use this approach to keep emotion and stress out of investing. Although I am a self-confessed news junkie, when it comes to picking stocks, I do not want something as strange as Greek politics or Italian lifestyle choices to affect my decision making process.

I try to keep most of my focus on tangible book value, but I am starting to see a lot of merit in using the combination of Z and F scores as well. It just makes sense that buying stocks that are financially healthy with improving fundamentals is an approach that can easily be combined with valuation to help produce winning stock picks....558 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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