Investing Fundamentals

Not Sure What Stocks to Buy? Our Guide on How to Pick Stocks

Table of Contents  
  1. Show Notes

You can let something like Betterment pick your stocks but if you’re ready to dabble on your own, we’ll teach you how to do the job yourself.

Andrew researches and buys individual stocks in addition to investing in ETF’s through Vanguard and Betterment.  He’s had some clunkers but the good has vastly outweighed the bad.  We’ll find out what criteria he uses to choose what to buy.

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Buy only what you know and understand.  If you love Apple products, buy Apple stock.  Matt bought Sirius without knowing anything more than Howard Stern was heading over there.  And he lost money.

This criteria alone will considerably shorten your list. Stock price doesn’t have to be such a big factor in your choice.  You don’t even have to buy a full share.

Bulls and bears make money and pigs go to the abattoir so don’t get greedy!  Be happy with your 7% and let compounding interest take the strain.

Read some news!  And from reputable sources, not whatever Jim Kramer shouted at you.  Not just in the business section either. If you’re just getting your feet wet, things like the Wall Street Journal can seem like they’re in a different language. More general news will be worded in a way that is easier for the average person without a finance degree to understand.

Read a few international papers to get a broader perspective, Le Monde, The Guradian, Der Spiegel.  Chrome will translate the pages for you if you don’t speak that language. The American media seems to love violence and sex more than the international media so there will be less Kardashian coverage to wade through.

You don’t have to pick individual stocks to be a good investor but it’s not as hard or intimidating as you think either.  Good luck!

Show Notes

Betterment:  If you don’t want to pick your own, let Betterment do it for you.

 

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