{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"109 - How much time should you research a stock before buying?","description":"Mental Models discussed in this podcast:  The Pareto Principle (80\/20 Rule)  Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.&amp;nbsp; Follow me on Twitter and YouTube Twitter Handle:&amp;nbsp;@TreyHenninger YouTube Channel:&amp;nbsp;DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you\u2019d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at&amp;nbsp;DIYInvesting.org\/Patron. Show Outline The full show notes for this episode are available at&amp;nbsp;https:\/\/www.diyinvesting.org\/Episode109 How much time should you spend researching stocks?  It Varies As long as it takes to answer your questions 80\/20 Pareto Principle 10 hours - I don't think I've ever spent more than 10 hours before buying a stock I like.&amp;nbsp;  How to prioritize your research time  First ten minutes: Is it cheap?  If you can't answer in ten minutes, the answer is NO.   Next 1-2 hours: Is it good?  If you can't answer in 2 hours, the answer is NO.   Next 8 hours: Is it safe?  If you can't answer in 8 hours, the answer is NO.   The efficiency of research time is important:  The most important: Safe &amp;gt; Good &amp;gt; Cheap The easiest to verify: Cheap &amp;gt; Good &amp;gt; Safe   All you need to know in ten hours:  Is this my best current idea? Is it better than something I currently own? You need to answer &quot;YES!&quot; to both.&amp;nbsp; If you hold cash, then the second question becomes:  Is it better than cash?       &amp;nbsp;  Summary: The process of researching stocks requires a significant amount of time investment. You should optimize the time you spend researching by focusing on three questions: Cheap? Good? Safe? You should be able to answer in ten hours or less. My personal process focuses on two additional questions: Is this my best current stock idea? Is this company better than something I currently own? If you can answer both questions affirmatively, you should probably buy the stock. ","author_name":"The DIY Investing Podcast","author_url":"https:\/\/www.diyinvesting.org","html":"<iframe title=\"Libsyn Player\" style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/17666258\/height\/90\/theme\/custom\/thumbnail\/yes\/direction\/forward\/render-playlist\/no\/custom-color\/1b07f0\/\" height=\"90\" width=\"600\" scrolling=\"no\"  allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen><\/iframe>","thumbnail_url":"https:\/\/assets.libsyn.com\/secure\/content\/94197299"}