Special Report
Team Preparation
The beginner investor looks to the process of searching for shares he is thinking of buying as confusing and disturbing, but the journey to search for shares and investments will not be as difficult as it appears at first glance, if the investor understood how to read the financial statements .
As a junior investor, you can search and choose your stocks and offer good or maybe better performance than some Wall Street professional investors, but all you have to do is educate yourself first.
Here are some things to keep in mind when starting your search and selection process:
Define your goals
The first step for choosing stocks is to define the purpose of your portfolio, as criteria differ between investors interested in income requirements and those who seek to maintain or increase capital. income-oriented investors usually target low-growth industrial companies, although REITs and major limited partnerships are readily available alternatives as well. As for investors interested in preserving capital, and their level of risk is lower than others, they may tend, for example, to buy shares of companies with a reputation and reliability and the ability to achieve gains in light of market fluctuations. How to start looking for stocks When you decide to invest in a product, a car for example, you will not likely take this step before conducting some research on your preferred model and comparing it to its closest competitors. Likewise, you should not invest in stocks without knowing anything about the activity. Commercial. Owning stocks is tantamount to owning stakes in different companies, and companies that issue shares are required to prepare and publish public reports, and these reports must be the place from which to set out to buy shares. It should be noted, that although there is no single correct way to choose stocks, the basic strategy that you adopt should help you narrow the scope of your research before you start analyzing the company's financial statements. Read the company's annual report Many of the companies ’annual reports are at your fingertips .. But you are puzzled and wondering how to read these reports to get the information you need, and here you may consider using a financial advisor to help you understand the financial data and analyze it in order to make an investment decision Correct. Since reading the annual report is the key to evaluating a company, training in number analysis and knowledge of the situation ...
