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  /  Editor's Pick   /  Just released: August’s high-risk, high-reward stock recommendation [PREMIUM PICKS]

Just released: August’s high-risk, high-reward stock recommendation [PREMIUM PICKS]

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Premium content from Motley Fool Share Advisor UK

Investors following the Fire style are accepting higher risk with the goal of attaining higher returns over time. So this approach requires a higher risk tolerance, and the willingness to accept significant volatility in share prices. In October 2019, we also expanded the range of our Fire shares to also include potential recommendations from the US stock market, which tends to include a better variety of “growth” stocks.

We suggest that investors that primarily buy Fire shares should be particularly mindful of diversification in their portfolios. With sufficient diversification investors should still be able benefit from any upside, while limiting the damage to their portfolio when situations don’t turn out as we hoped.

We don’t consider Fire investing to be gambling or a get-rich-quick scheme, though. We aim to be long-term owners of these businesses and reap the rewards from their success. Our investing time horizon for these shares is measured in years and decades, not weeks and months.

“Under the current CEO the business has become leaner, quicker to react to new developments, and an altogether more attractive investment than it was before their reign.”

Ian Pierce, Share Advisor

August’s Fire recommendation:

Redacted

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The post Just released: August’s high-risk, high-reward stock recommendation [PREMIUM PICKS] appeared first on The Motley Fool UK.

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