I recommend that you develop and follow a well-defined investing policy that you can use to guide your investing decisions. As an example, my investing policy includes the following guidelines, which I use to manage and qualify companies for inclusion in my portfolio: 

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1)  My portfolio should be concentrated in about 10 companies.

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2) I should minimize trading costs and management fees.

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3)  Each holding should pay a significant and growing dividend.

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4)  Each holding should be a financially stable Canadian company, whose operations I am familiar with.

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5)  Each holding should operate in a stable industry and dominate their industry peers.

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6)  Each holding should have excellent prospects for long term financial success.

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You should develop an investing policy that reflects your unique financial situation, however the foregoing example provides a reasonable starting point. The important point is that you have a clear policy that is written down and which you can refer to from time to time. You should review your investing policy and guidelines every year or so and make changes, if necessary, to accommodate any changes in your financial circumstances.

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