Making money in stocks

If you want to make money in stocks stop thinking about the short term and start concentrating on the long term. In the past 15 years of trading the only short term traders who i know who won money in the market trading short term were on the floor of the exchange. But intersetingly the most successful ones did not do as well as the best long term traders that i've known over the years.What was the secret that these long term traders had in common that made them big winners? Here goes;1) concentrate your holdings,in other words don't buy to many stocks 2)get to know every thing about the companies you are buying and make sure their the top companies in there industry 3)buy them when their out of favor.


Sound farfetched. Let me cite some examples;who could forget Philip Morris when it was at 18 and it's dividend yield was 11%.How about the property/casualty companies when they were out of favor about 1 year ago such as Progressive Corp,Allstsate,Old Republic.Who remembers the drug companies in 1994 when you could pick them up at single digit PE ratios and they proceeded to quintiple in 5 years.I could give other examples but i'm sure you get the point. When good quality companies are out of favor load up and hold them for the long term and you will join the small number of investors who make the big money.