How to find good stocks ?

[Stonebeard]

Browse S&P 500 and start with the first stock there. Like Warren Buffet said, start with letter A.

 

[Hulu Girl]

You need to do lots of research, before you select any of the stocks to invest in.

 

[stoch]

Pick stocks with good dividends and ignore short-term fluctuations. Growth stocks are overvalued also dividends stocks make you feel more confident.

 

[s.sharma]

^ quite agreed with this. Also, it is good suggestion to pick well known stocks, tho they are bit pricey

 

[Curious Investor]

To pick good stocks you will need to follow the below steps. These steps will help you make an informed decision.

1) Learn the basic terms about stock markets ( I am hoping you already know them)
2) Do a fundamental analysis of the company i.e it's mission, upcoming announcements, revenue sector, major revenue segments, some major government policies affecting that sector, sales (profits and losses) etc
3) Check out the growth performance of the company since the last 5 years
4) Check out some major parameters i.e P/E, P/B, Dividends, PAT etc.

If you are still unsure, then you can always buy well known stocks.

Just for an example of how to analyse a company before buying stocks I am attaching a url below. Do check out this video and you will get an idea.

 

[Adoradred]

The first thing you'd better to learn is some basic economic concepts and the idea of how financial markets work. Many traders tend to skip this stage, but from my perspective, it is one of the key things a trader should have before he starts to trade and aspire to gaining the profits from the market. I believe that it is next to impossible to make profits from the activity that you don't fully understand.

 

[Zuluhn]

I think that you'd better start with the S&P500 and find the most volatile and liquid stocks out there.

 

[nancy.ahuja2414]

Picking the right stocks is crucial for successful investing. Simple steps to select the right stock are as follows:

1. Find out the company with Good Fundamentals. To invest in a fundamentally strong company, you can pick and filter the companies based on their financial health. In order to investigate further the fundamental health, you need to look into mainly these five financial ratios -

• An increase in Earnings Per Share (EPS)
• A lower-Price to Earnings Ratio (PE) as compared to competitors
• A lower-Price to Book Ratio (PBV) as compared to competitors
• Debt to Equity Ratio <0.5 or 0
• Increasing Current Ratio in the last 5 years

2. Make sure you understand the Products/Services offered by the company. It helps investors to understand a fall or rise in the stock price and make the investment decision more precisely.

3. Pick a company with a unique selling point (USP) that will support it in the long run, and thus, your investment.

4. Remember, cheap is not always good. You should find out the reason why a company's stock is undervalued. Is there any growth opportunity if you invest in it or not.

5. You can not rely on past returns of the company. For future growth, you need to consider different aspects of its management, competitors, industry, economy, etc.

 

[Malanos]

Man, you gave a nice piece of advice, but it is about investing in stocks rather than trading with the stocks. Perhaps, I am wrong, but I feel that the threadrunner looks forward to trade with stocks and they aspire to getting the profits from daily fluctuations rather than investing to the stocks for a long time.

 

[stoch]

If u focus on the long-run investments, ESG stocks and companies that may benefit from green transformations are IMO the best choice.