You’ve made the decision to be investing your money, but how do you know which stock you should invest in? I’ll help you!
00:00 Let me share the 3 requirements.
01:27 1. The investment you make, should always be in something that has great growth potential.
Be sure to invest your money in a stock that will keep on growing in the future, and doesn’t just go up and down, but stays around the same price in the end.
03:38 2. The second requirement is volatility.
An importance within volatility is that the stocks need to be growing.
So this has to have a direct relationship with the first requirement, growth stock.
Buying low and selling high, but also, value growth over time.
And with this combination, you can’t miss the great returns!
05:15 3. And the last requirement your investment portfolio needs to have is variety.
There are multiple things. One of them is variety of sectors. If you have a stock in the technological sector, be sure to add some other sectors as well, for example healthcare and financial services.
But there is also the variety of regions, like don’t invest in Asia only, but be sure to have your investments spread out all over the world. So the moment a crash happens in Asia, your stocks in the US won’t be affected.
Or how about sustainability, now we can only be thinking about our money and the returns we make, but we should also think about our future. How sustainable is your stock? How well do they take care of our world?
If you’re already investing, maybe it’s not a bad idea to take a look at your current portfolio.
Does your portfolio have a specific area of expertise.
06:47 BONUS: I would like to share one more requirement that is a necessity for 2021, but no one really pays attention to.
The stock should always be outperforming the benchmark.
If your stock is in the technological sector, what’s the benchmark? And how well is that stock performing? And how well is your stock comparing to that benchmark? Is it doing well, but not outperforming the benchmark? Then there is still much to win.
Your stock may be growing, your stock may have high volatility, and your stocks portfolio may be a variety of sectors, but if all your stocks do not outperform the benchmark, it’s just one of the many companies out there.
Happy investing!