I would like to receive updates and special offers from Dow Jones and affiliates. I can unsubscribe at any time.

So while we should always try to assess where a stock or sector is headed, the better way to trade is with a simple framework: Any stock can go up and thus be a source of profits. However, owning each stock comes with different levels of risk,

Buffett just invested $3.9 billion in 12 stocks, including three brand-new positions. Several of his purchases look like good picks, but one stands out as the best of the bunch. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »