How I Made $2,000,000 in the Stock Market

by Nicolas Darvas

7. I should rather hold on to one rising stock for a longer period than juggle with a dozen stocks for a short period at a time.

What, I asked myself, was the value of examining company reports, studying the industry outlook, the ratings, the price-earnings ratios? The stock that saved me from disaster was one about which I knew nothing. I picked it for one reason only—it seemed to be rising. Was this the answer? It could be.

In the same way, I decided that if a usually inactive stock suddenly became active I would consider this unusual, and if it also advanced in price I would buy it. I would assume that somewhere behind the out-of-the-ordinary movement there was a group who had some good information. By buying the stock I would become their silent partner.