How to Find a Good Company
We've taken the plunge and put money into the stock market through an index fund. Now it is time to take the next step and buy our first company. There are thousands of companies on offer just in Australia, with hundreds of thousands of companies available across the globe (latest estimates 630,000). With so much choice, no one can research every company.
So we introduce three simple ways to cut down that number of companies to a far more manageable list. This is the daunting part for a lot of people. Starting the research process on individual companies and trying to assess which will be good investments.
This episode should make a little easier but most importantly, should remind you that you don't need to get it right every time. No one has a 100% track record in investing. The good thing - to build long term wealth you don't even need to get 50% right. By selling companies you are losing money on, and letting your good picks grow and grow - you can still make money while being wrong half the time.
In this episode we start to unpack how. In this episode you will learn:
- The vast number of companies available for you to invest in
- Three ways you can narrow down your choices
- Look around and use your experiences
- Follow the leader
- Stock screeners
- Key things to keep in mind when buying individual companies
Head to the Get Started Investing website for more info.
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