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Byline: DAVID SAITO-CHUNG
Every bull market has, and probably will, differ from the one before it. But that doesn't mean you should adjust your strategy on choosing good stocks.
As always, find an industry sector that has taken the baton. Then, within that sector, nail down the stock that leads its peers in profit, sales, margins and stock-price action.
Grabbing shares of that company as it bursts out of an early-stage base can put you in the saddle for runaway gains. Ignore the stock, and your portfolio may get left behind in a dust bowl of mediocrity.
Past bull markets confirm this. Back in the late 1960s and early 1970s, McDonald's took off as convenience-style dining and franchising exploded. In the 1980s, The Gap and The Limited made the biggest strides, as more women went to work and casual clothes became in.
In the 1990s, Dell Computer outstripped its peers in the PC market, thanks to its low prices and stripped-down inventory system. New leaders are emerging today in fast-growing markets such as security software, ethical drugs and graphics chips.
Yes, few of us knew early on that these firms would become the big cheeses in their industries. But as each one pounded out ...