Contrary to urban legend, winning stock ideas don't appear fully formed to Fool co-founder David Gardner in his dreams, nor does he instantly make successful purchases on the ticker symbols that appear in his alphabet soup. No, in order to achieve his market-stomping results, David makes the most of his watchlist, just like all smart investors should.
His watchlist is more robust than the average investor's, with more than 100 names, and it pulls together thinking from a broad range of sources. David added Quest Diagnostics
As David says, "I can't watch every ticker out there, so My Watchlist helps narrow my focus. And after you watch a stock for a while, you'll be positioned to make better decisions."
Roughly six months ago, David added Financial Engines
When David sells a stock, he'll often add it to his watchlist to see how it performs after he lets it go from his portfolio. "I use My Watchlist there so I can learn from whether or not that was a smart sell," he says. "Many people sell and it's gone from their consciousness. They don't pay any further attention to it and forget all about it. I try to learn something from my decisions. And who knows, maybe someday it'll look attractive again."
David put Value Line
And a good watchlist can definitely make you money. David started watching MercadoLibre
You can help yourself make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click here to start building yours, or click below to start following one of the four stocks mentioned above:
Roger Friedman doesn't own shares of any companies mentioned, but they're all now on his watchlist. Quest Diagnostics is a Motley Fool Inside Value pick. MercadoLibre is a Motley Fool Rule Breakers recommendation. LabCorp is a Motley Fool Stock Advisor selection. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.