How to Choose the Best Stocks
There are almost as many ways to choose the best stocks as there are stocks themselves.
If you watch the business channels or listen to business news on the radio, many ways of choosing the best stocks are given.
Each well-dressed individual on television thinks he is the most knowledgeable.
One thing is for certain, as long as the people are under the spell that the stock market always goes up, it always will.
When stock market is mentioned it could be here in NY, Asia or Europe.
There are many stocks and the theories of which are the best stocks cover all the markets.
Some stocks sell on many exchanges worldwide, others do not.
In this age of computer technology it is as easy buying an American stock as a Japanese stock in Japan.
If you are choosing a stock no person really has heard about, it can be a company that is just starting out.
It could go in any direction.
That is kind of gambling, as to whether that stock ever reaches any sort of potential.
How to choose the best stocks usually involves household name companies or fairly well-known companies.
Starting from this assumption let us try to choose the best stock (those that go up higher), or the sector they are in.
This means Exxon-Mobil (XOM), would fall into the energy sector, McDonald's into the food sector.
For a stock to be the best, it should weather all economic conditions.
It might not go up the most but you can be sure it will still be in business, or gobbled up by another company which means you still will probably make money.
Energy will be with us for quite some time, so as previously mentioned you cannot go wrong with oil stocks.
They might go down for a bit and cut a dividend, but you will be in good stead for a long time.
Some consumer companies are also here to stay.
Does anyone think Hershey's Chocolates (HSY) is leaving us? Now here is a difference.
Staples is doing well, but there is much competition in the business supplies game, and nobody can guarantee that another company will not rise high enough to bankrupt Staples.
Food stores would follow the same logic, as well as department stores.
The best stocks are companies that have something in their inventory or in production that cannot be challenged and they are too big to be taken down by competitors.
Again these are McDonald's, Exxon-Mobil, Hershey's, Microsoft to name a few.
To find the others you would need to do the research.
Of course the financial condition of the company should be examined.
This is usually done by professionals, and they get taken in at times as we have seen recently on Wall Street.
It is a combination of gut feeling and a knowledge of what products will always be in demand.
Also, what the companies have in the pipeline ready to be released to the public.
When you pick what you think are the best stocks, remember the ride is not always straight up.
If you watch the business channels or listen to business news on the radio, many ways of choosing the best stocks are given.
Each well-dressed individual on television thinks he is the most knowledgeable.
One thing is for certain, as long as the people are under the spell that the stock market always goes up, it always will.
When stock market is mentioned it could be here in NY, Asia or Europe.
There are many stocks and the theories of which are the best stocks cover all the markets.
Some stocks sell on many exchanges worldwide, others do not.
In this age of computer technology it is as easy buying an American stock as a Japanese stock in Japan.
If you are choosing a stock no person really has heard about, it can be a company that is just starting out.
It could go in any direction.
That is kind of gambling, as to whether that stock ever reaches any sort of potential.
How to choose the best stocks usually involves household name companies or fairly well-known companies.
Starting from this assumption let us try to choose the best stock (those that go up higher), or the sector they are in.
This means Exxon-Mobil (XOM), would fall into the energy sector, McDonald's into the food sector.
For a stock to be the best, it should weather all economic conditions.
It might not go up the most but you can be sure it will still be in business, or gobbled up by another company which means you still will probably make money.
Energy will be with us for quite some time, so as previously mentioned you cannot go wrong with oil stocks.
They might go down for a bit and cut a dividend, but you will be in good stead for a long time.
Some consumer companies are also here to stay.
Does anyone think Hershey's Chocolates (HSY) is leaving us? Now here is a difference.
Staples is doing well, but there is much competition in the business supplies game, and nobody can guarantee that another company will not rise high enough to bankrupt Staples.
Food stores would follow the same logic, as well as department stores.
The best stocks are companies that have something in their inventory or in production that cannot be challenged and they are too big to be taken down by competitors.
Again these are McDonald's, Exxon-Mobil, Hershey's, Microsoft to name a few.
To find the others you would need to do the research.
Of course the financial condition of the company should be examined.
This is usually done by professionals, and they get taken in at times as we have seen recently on Wall Street.
It is a combination of gut feeling and a knowledge of what products will always be in demand.
Also, what the companies have in the pipeline ready to be released to the public.
When you pick what you think are the best stocks, remember the ride is not always straight up.
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