The potential for, and the extent to which, a specific security is likely to increase in value in the near future. As a private investor, your main focus should be on finding those shares with upside potential in the market. This involves being observant and recognising opportunities which have not been discovered yet. The way to achieve this is to study the financial media in details, as well as the financial statements of as many listed companies as possible. Warren Buffet is said to study 2000 sets of financials each year.
Share this glossary term: