The following content is not a personal recommendation to buy shares in the companies listed as I am not taking your personal financial situation into account.

When I Get Concerned About a Company in My Investment Portfolio… and What I Do About It

The Importance of Earnings Reports

I get worried when any of the companies I own will likely see their earnings begin to decline in coming quarters. This can often happen after a company issues a future market guidance report (which usually comes with each quarter’s earnings report). Or on the company’s shareholder conference call.
Apart from that, I do not worry about general share price movements on a day-to-day basis.

Each day, when I look at the companies that I own, I am eager to see if there has been any news that could impact their earnings potential.

If the overall market is up or down, this is of no real interest to me because the companies I own, on bullish days, are likely up. And on bearish days are likely down, in line with the rest of the market.

Reacting to Unusual Market Movements

However, if the overall market is flat or up and one of the companies I own is unusually down in price, then that must be investigated.

Here is what I do…

I go straight to the company’s investor relations website, which every listed company will have. For example, I want you to pick a company right now that you own and Google the company name and then Investor Relations.

If I am looking for the Investor Relations webpage for Apple, I would go to Google and type in

Apple Investor Relations

…and it will take me straight to the investor relations home page, where any company statements are reported.

I always read this first before looking on CNBC, Bloomberg or Yahoo Finance for company news.

If a company has an unusually large price decline (more than 5% on a single day) you can usually just Google the company name and the word “news” and it will show you any news articles relating to the company.

For example, if I wanted to search for Apple news I would simply go to Google and type in:

Apple News

…and it will give me a number of options with news about Apple.

Just make sure the date of the news release is today’s date and not weeks or months ago.

Click here to go to the Microsoft Investor Relations page and you will see that it is very nicely laid out.

If you scroll down a little, on the right-hand side, you will see Past Events. And you can read the recent quarterly statement and even listen to the conference call hosted by Senior Management.

You really need to be reading and listening to every one of these events for the companies you own.

It is the only way to get a proper understanding of how the business is performing and how it will likely improve its earnings in the future.

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