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Judgment

• The human element which is necessary for successful investing. Computers can crunch numbers, follow formulas, and provide some artificial intelligence, but judgment is crucial for making the careful decisions. The investor must be informed about the company's past and future plans, and be prepared to make some educated estimates about future trends. In all cases, judgment must be applied when doing any stock analysis.

 
 Embedded terms in definition
 Future
Investor
Stock
 
 Referenced Terms
 Ethics: Standards of conduct or moral Judgment.Standards of conduct or moral Judgment.

 Ethics: Standards of conduct or moral Judgment.Standards of conduct or moral Judgment.

 Insider ownership: Employees, executives and directors who have their own money invested in the company are Insiders. By holding shares, they show that they have confidence in the security and future of their investment. They have extra incentive to make the company profitable. The percentage of insider ownership desirable is a Judgment call. At 51% or more, the insiders definitely have the controlling interest.

 Subject to opinion: An auditor's opinion reflecting acceptance of a company's financial statements subject to pervasive uncertainty that cannot be adequately measured, such as information relating to the value of inventories, reserves for losses, or other matters subject to Judgment.

 Subjective probabilities: Probabilities that are determined subjectively (for example, on the basis of Judgment rather than using statistical sampling).

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Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful. - Herman Cain

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