As it applies to investing, a strong dose of aptitude is essential if good results are to be expected. For many, unfortunately, investing is more about speculation than serious observation. Therein lies a dilemma: speculation involves guesswork, observation demands homework.

For a portfolio to reach the desired altitude, it must comprise securities that are highly likely to rise in both value and price. The question is: what steps does on take to maximise the chances that one’s portfolio is populated by such securities?

This article references the recent high/low altitude of the ASX 200. From here onwards, these articles will examine the collective aspects of the three pillars in each issue to demonstrate how, in reality, attitude, aptitude and altitude comingle to provide the basis for understanding the investment process.