I am 25, and planning to invest in stock market for my retirement. What is the best way to choose good stocks for long term investment?
Chosen Answer:
Invest in quality stocks for long-term and don’t depend on stock trading too much.
Holding quality stock is like owning an excellent company; with hardworking employees struggle to generate income as much as possible for you. While stock trading is good for short term investment period, it will cost you much in transaction cost in the long-run.
to pick this kind of stock, look stocks that able to perform 15% ROE and 15% EPSGR (just for example) at least for the past 10 years. you’ll be amazed on how much junk stocks are in the stock market by just applying this method.
high in ROE show that the company is working really hard to satisfy its investors. as much as possible, they’ll meet the target set before and able to return some of the profit to its investors. this can be either in dividend or bonus issues.
high in EPSGR means the company able to grow in a growing industry. higher growth than the industry average shows that their product or services is widely acceptable to customer, another comparison that you need to do.
if you interested to learn in detail, please study the detail here
http://www.stock-investment-made-easy.com/index.html
it seems that details on which stock worth investing is accessible to public now.
Happy Investing & Have A Nice Day…
by: BigBen
on: 17th July 07
To be safe in investing, its good to go for dividends. At this time REITs offer a good buy because they sold off recently when there was an intererst rate (going up) scare. The ones i am invested in are Developers Diversified Realty (yield ~4%) and Northfield Realty (yield 11%) By law they have to pay out 90% of their income to the shareholders. Reinvest the dividends and your account will grow nicely.
Put some high percentage in high dividend investments and the rest can go into growth stocks like Alternative Energy. Its best to use a mutual fund for this like GAAEX. Look it up.
good luck
For the long run, you want to avoid making too many transactions that reduce the amount you have. Make sure to diversify! You don’t want to lose all your money because of a bad stock or a dip in a certain countries’ stock market. I think that mutual funds are the best idea because they are already diversified for you meaning you have to think about things even more. Since you are only 25, you have a lot of time on your hands, which is your best advantage. The money that you invest now at even a modest rate will be worth close to a million by retirement age. A Roth IRA would be a good mode of investment. Since the money is taxed when you put it in, you never pay taxes on any of the gains unless you withdraw before 59 1/2. Just make sure you research whatever mutual funds or stocks that you want to purchase. Good luck!
Investing in “individual” stocks takes a lot of knowledge and practice; so I would not suggest doing this until you understand completely how the stock markets work.
Vanguard.com is ideal for long term investors who want to learn about mutual funds, index funds, and exchange-traded-funds (ETFs). Trading funds is less risky than trying to trade “individual” stocks.
Unless you plan on spending everyday of your life looking at stock charts trying to determine the best time to get in and out of “individual” stocks, I would look into some sort of fund.
Also be very careful about asking for stock tips online. Most are probably worthless or contain unethical motives. Do not fall for any Pump-and-Dump scams.
As far as books go, I actually started out with the Investing for Dummies books, and they definitely pushed me in the right direction. To many other books have their own agendas in my opinion.
The websites below all contain plenty of FREE information to get you started in the right direction.
You don’t. (That’s my job)
I am a Portfolio Manager.
The best way is to invest in the companies whose products you already know and love. That is the best way to start. Once you are more comfortable, then I would suggest picking a certain sector, (like agriculture, just as an example), and learn everything you can about that sector. Or maybe just learn about the sector that you work in. You might also want to open a “practice” portfolio at http://www.top10traders.com – it’s free – each month the site ranks the best performing investors.
http://www.tradingzoom.com/home
Invest in quality stocks for long-term and don’t depend on stock trading too much.
Holding quality stock is like owning an excellent company; with hardworking employees struggle to generate income as much as possible for you. While stock trading is good for short term investment period, it will cost you much in transaction cost in the long-run.
to pick this kind of stock, look stocks that able to perform 15% ROE and 15% EPSGR (just for example) at least for the past 10 years. you’ll be amazed on how much junk stocks are in the stock market by just applying this method.
high in ROE show that the company is working really hard to satisfy its investors. as much as possible, they’ll meet the target set before and able to return some of the profit to its investors. this can be either in dividend or bonus issues.
high in EPSGR means the company able to grow in a growing industry. higher growth than the industry average shows that their product or services is widely acceptable to customer, another comparison that you need to do.
if you interested to learn in detail, please study the detail here
http://www.stock-investment-made-easy.com/index.html
it seems that details on which stock worth investing is accessible to public now.
Happy Investing & Have A Nice Day…
At this time, place your savings into trust worthy funds. Start spending some time learning about the stock market. Read about the different methods for selecting stocks to buy and when to sell. This is not going to happen over night. It can take several years. The market is rigid and changes to try to take your money from you. If you jump into it too soon, you will have a costly learning experience. Try paper trading stocks for a while to see how good you really are. When you are satisfied with your performance, open an on-line brokerage IRA account and use a portion of your retirement funds. Pick stocks when the market and the stock price swing provides the highest statistical probability of being able to sell with a gain. I use yahoo group ComputerProgramPicks. Best of luck to you. Luck is executing with a prepared mind.