Of course, all promotions Vary at a cost, reliability and availability of dividend Deductions. Here we Try dot the i's in the question, what shares to buy to get greater income and choose for investment
It all starts with the capital investor. If the capital is large, then you are probably targeting a portfolio, which consists of a significant number of shares, in other words, not only an abundance of companies, and the number of shares itself. In the case of small capital, it is also better to adhere to the principle of contrast., even if you buy only one share at a time, but different 10 companies.
Ultimately, the question “what shares to take?»Runs from quantitative to benign. The securities purchased must be reliable assets, which have great growth potential.
For example, from January to December, Intel shares rose from $24 to $37. That's roughly fifty-eight percent of net income.. Simultaneously, Seaboard's “expensive” stocks have wandered in the same spectrum over the same period, showing no harsh variability.
What shares are currently profitable to take
All professionals present on the market are working on this issue., and we will tell, what shares are profitable to take, how to choose stocks to buy and where to find them, in principle.
Specifically, here one cannot but recall the book of the popular Peter Lynch - The Peter Lynch Way, in which he spoke, how to choose stocks to buy. If you want to find out a lot of subtleties, then you should definitely read this book. By the way,, it is not difficult to read at all, filled with an abundance of life examples and the author's personal experience. We will give a few examples from this book., what shares are profitable to take.
How to choose promotions
One great method is to find stocks on the streets.. Great examples - McDonalds, Dunkin’ Donuts, Subaru ... these companies have grown tenfold since entering the market.
Of course, these examples have already realized themselves., but every year new companies appear on the market with new products and services, and if you think, that these are great products and services, which did not exist before or which have huge advantages, then you should inquire about their shares.
Now is the time to inform, that stock growth rates depend on the size of the company. For example, no one buys Coca-Cola stocks for an increase in 5 once a year. This huge company is extremely reliable and measured., but to even double, she will need to make some new coup, make a revolutionary product. From a mathematical point of view, such companies have no chance of doubling any time soon., for example, General Electic is already so huge, that it accounts for approximately 1% US GNP.
Now let's compare with young companies, be it a tech startup or a new restaurant chain.
What shares are better to take
There is an opinion, what is better to take shares, whose title is extremely sour. This informs about that, that the company thinks more about the product and productivity than about the cover. According to statistics, companies with non-individual names like “Automatic Data Processing” or “Moe and Jack” grow faster and more stable, than the likes of "General International". Wall Street specialists will not recommend or direct attention to boring and awkward names, and when directed, the shares of these companies will already increase by a hundred times.
Companies, which experts and Wall Street are not interested in - potential hundred-fold (stocks that rise in 100 once). They are often boring, but do principal functions, without which it is difficult to live now, and if the shares of such companies are traded on the stock exchange NYSE, Nasdaq, XETRA is a good symbol for a fundamental study of this company's stock..
Which stocks are profitable to buy
The lack of rivals can also be a positive side.. For instance, 21st Century Fox has many rivals, unlike gravel pit, Having?? its clear niche. By the way,, 21st Century Fox figured it out and bought shares in Pebble Beach along with her career.
Shares of companies, who create or sell a product, which is constantly being bought - also applicants for the shares, which is better to take. These could be medications., Drinks, food, razor blades ...
To a request to respond, which stocks are better to take, Insiders will answer for you - employees of companies or large investment funds.
Watch for that, what shares are purchased by the employees of the companies, or for example, similar funds, as Warren Buffett's Berkshire Hathaway. Tracking purchases of American insiders is not easy, because when heads of companies buy shares, they must fill out the form 4 в SEC. This information is published in the Value Line, Vickers Weekly Insider Report, The Insiders, Barron’s, The Wall Street Journal. By the way,, the sale of shares by insiders occasionally means difficulties in the company, but buying - stocks will grow.
If a company is buying back its shares, this is a good sign to study the company., because the company is so confident inside itself, that contributes to itself.
There is an opinion, what is best to avoid companies at the top of growth, when the company has already achieved international recognition. However, this must be approached carefully..
For instance, Coca-Cola is unlikely to invent a new cola and double the consumption of the drink, but all the popular and top-ranked Apple, in 2007 released iPhone 2, and it would seem, the company is extremely successful, and has already achieved a lot, and on top of growth, but since that time, their shares have grown by a large number of times:
And yet, do not rush to popular companies, who are already global giants, much more you can get income on few recognizable stocks and more promising companies in terms of percentage growth in production and sales.
Beware of the second.
Companies invest in themselves like 2nd McDonalds or 2nd Microsoft, will not be winners. 2-s stay far behind.
Don't buy stocks of companies, invest in unknown and uncharacteristic areas.
There are a lot of examples, for example, the successful Gillette bought a business of home first aid kits and the production of watches. Then they just wrote it off for a complete loss.. Or - Exxon Mobil bought an electrical and venture capital company. After the failure, they abandoned similar decisions and returned to their own main sphere..
You shouldn't buy company shares, if she sells 20-50% products to one buyer.
For example, processor manufacturer for IBM. If at some point IBM decides to switch to other processors or start assembling them yourself, you can find yourself in an unpleasant position.
How to borrow securities from the database
What stocks are worth buying - One method of realizing the potential of the issuer is to study the various characteristics and markers, Make?? based on the financial statements of this company.
EBITDA
Financial indicator, equal to the amount of income before dividend payment, tax and depreciation costs.
EBITDA is calculated from the accounting statistics of the company and is required to determine the profitability of its work. It is used in comparison with other companies and makes it possible to evaluate the productivity of the issuer's work independently. EBITDA is not part of accounting standards. Historically, it was used when calculating the possibility of acquiring a company with borrowed funds..
P/E, either cost and profit
This is a financial indicator, which is the ratio of the stock price to annual earnings, divided by the total number of shares.
P / E is the main indicator, used in assessing the investment attractiveness of companies. Low values of the indicator indicate the undervaluation of the issuer, huge - opposite, about overbought. The main drawback of the "cost and profit" indicator will be that, that he can demonstrate a negative share price, if the accounting report showed a loss for the past year.
P / S - cost and size of sales
Financial indicator, equal to the ratio of the company's stock capitalization to its annual revenue.
P / S is the baseline, used in assessing the investment attractiveness of companies. The assessment is carried out among peer industries and is based on the expectation of experienced players that, that the profit therefore generates the required volumes of currency flow. Low P / S values indicate undervalued stock of the issuer, and huge ones - opposite, about overbought.
The harsh advantage of P / S is that, that he does not acquire negative characteristics, as a P / E indicator.
The minus of the indicator is, that the numerator is a measure of your capital, and the denominator represents income on own and borrowed capital.
Working at one large international site, exchange traders can compose a portfolio of a wide variety of securities. Pursuing the goal of specifically preserving funds, the financier should focus primarily on companies, Creating?? the highest added price to your own product. This, usually, industrial and processing companies.
What shares to take now
Of the total share, an amount in the region of 40-50 percent of the knapsack must be transferred to the industry. 10-fifteen percent can be allocated for IT and progressive technologies, including money companies. The remaining twenty-five percent can be invested in shares of mining companies, formative?? raw material market.
If the main goal of the financier is to increase his capital, then it makes sense to invest in so-called venture capital assets. First of all, these are emerging markets, Similar, as the Russian Federation, South America and China. In the classic western market, you can focus on risky IT assets, pharmaceutical companies and other companies with promising developments. All in all, these should be second-tier papers, who currently have low solvency.
What shares to take Is the endless question of the financier, which is not required to have a final answer, and specifically, the unchanging search makes the poor rich. Markets and companies are constantly changing, and that, who is constantly looking for answers to questions, new companies, little-known shares, companies with great prospects - this financier will often look for shares, which will increase in 10, 100 and more times.
