Just trying to falsify my hypothesis that I'm smart enough to invest in individual securities. In general I look quarter-to-quarter at stocks that seem undervalued on fundamentals, including quality of earnings and growth. Since most of my capital is in indices I usually own about a half dozen individual stocks at any one time, often buying when a 10-Q misses analyst expectations but the company seems strategically and financially strong enough to revert to the mean over the next year. I also try to keep an eye on macro indicators to steer me towards sectors that have a chance to perform well through the next year or two depending on my best guess at the maturity of the business cycle. I don't have any experience as a professional investor - coasting on my MBA and past experience in consulting.