Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

29 of 40
BACK NEXT
Stick with what you know
Richard Weiss
Managing director and senior portfolio manager, Wells Capital Management

I think the best advice I ever got was something I gave myself: It's not always greener on the other side. When I was a young analyst, in the late 70s, I followed some really good groups - technology, media and a lot of emerging companies, small cap mostly.

The way it worked back then, and probably works today, is that you would get calls on some little company with some special thing, and they always said that although it isn't making money now, it will. Most people I knew at the time invested their clients' money in good, solid, reputable companies, while they put their own in these obscure, unknown ones.

I had an epiphany: I am following good companies already, so why should I follow these "story" companies? With the companies you understand well, you know the good parts and the bad parts. In the "story" companies, you don't see the bad. Just because you own something and are familiar with it - and maybe even bored with it - doesn't mean you should ignore it because you get whispers in your ear about something new.

NEXT: You don't know more than the market knows

Last updated July 22 2008: 11:27 AM ET
More Galleries
'Spotlight' is just the latest edition of newspaper movies Here's a list of the best newspaper movies. More
Most valuable car collection ever auctioned In total, the 'Pinnacle Portfolio' is the most valuable group of cars from one collection ever sold in a single auction. More
This is how far robots have come since the 1930s Are robots catching up to humans? Yes. Should we be scared? Find out! More

Special Offer