Which stocks should I buy?
When presented with many options, it can be quite difficult to make a choice. Here's our advice on how you can decide on which stocks to buy.
Let’s get one thing out of the way - some very good guides here, here and here that can get you started on how to select stocks. There is enough good information out there is you want to learn the right process of selecting stocks, instead of just asking “which stocks should I buy?”
Taking a slightly different route, one piece of advice we came across recently was from Elon Musk.
While this definitely isn’t great financial advice - and most finance bros will say you’d be mad to listen to Mr. Musk. But, before dismissing this completely, let's dig a bit into what Elon is saying.
What he’s saying is - look around you - what products are you using, what brands do you buy, what services do you consume? Which company delighted you the last time you purchased something from them? Which companies, products or services are you loyal to - the ones you actively promote, are proud of wearing, using, buying and being seen with.
If you start and end your day with your phone, binge watch your favourite series on weekends, and keep researching the best running shoes to buy - you already have a few companies that you can identify - the ones who provide you with these products and services.
When you pick companies that make the products you love and use - you will be interested in the news that impacts them (and your investments in these companies). Any news, good or bad, will get your attention and you will be willing to invest time, because you are interested in them. And these may be the companies you may want to ‘own’ as a shareholder.
But if you buy stocks that someone else asked you to buy, you may not give any heed to what the company is doing at all!
Now, this doesn’t mean this is the best, and definitely not the only, way to invest. What we’re saying is - it is a decent starting point.
#investresponsibly