In his book (Next Decade, Inc;2000), Jordan Kimmel,president and portfolio managerat the Magnet InvestingGroup, details the MAGNETstock selection process, whichhe says contains underlyingfundamentals that are important,whether you're buying small, medium,or large cap stocks. That's because thetop-performing stocks, he says, displaycommon characteristics. The term MAGNETis an acronym that describes the followingcharacteristics of the companiesthat should attract investors:
The key, Kimmel says, is recognizingthat in today's market there are no sacredcows. That's why careful analysis is criticalin selecting quality investments.
Careful consideration should also begiven to selecting an experiencedwealth advisor who is able to work incollaboration with your other financialadvisors, such as an accountant or estateplanner. "That coordination is the key toa successful investing plan," Moriartysays. "You wouldn't believe how manypeople undervalue that. What we're tryingto identify for each individualinvestor is, for each additional percentagerate of return, how much incrementalrisk or volatility the investor is willingto accept. That's the key, and it's allabout gaining trust with your financialand wealth advisor. It takes a little bit oftime, but it's well worth the investmentin the end."