How to Review Your Stock Fundamentals

Just as you should watch for unexpected changes in your funds, you should watch even more closely for changes in your individual company stocks. Because funds are collections of stocks, changes may happen at a slower pace. But with individual stocks, things may shift quickly.

You'll likely want your stocks to meet the same investment criteria today as they did when you first bought them. When you're reviewing your stocks, ask yourself, “If the stock no longer meets those criteria, does it still belong in my portfolio?'

But as with funds, just because a stock no longer meets one of your criteria, you may not necessarily have a reason to sell it. You may want to put that stock on your list of 'stocks to watch' for the time being. If a stock no longer clears most of your investment criteria hurdles, however, it may become a sell candidate. Notice that we haven't been talking about price performance (whether the stock has an unrealized gain or loss), but rather whether or not it still fits the role in your portfolio that you originally wanted it to play.

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