The many types of stocks available on the stock exchange often make it difficult for prospective long-term stock investors to choose the right stocks for them according to the goals and timeframe they set. for example when investors choose stocks for retirement, so the stock investments they choose will be more than five years. Of course traders and long term investors will choose different stocks and they generally have criteria for selecting the right stock for them. There are types of high-risk stocks and low-risk stocks, and as a long-term investor, of course you will have other criteria for choosing stocks.
How do you choose stocks for long-term investment
- Thread starter Suba
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I mainly buy dividend paying blue chip stocks. Most of them are companies which have established for a long time and are reputable. I receive dividends on a regular basis. That is a great source of passive income.
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- #3
You are right to choose the right type of stock for long term investment, because bluechip stocks can pay dividends regularly, bluechip stocks are also issued by profitable companies. Bluechip stock price movements are also not too volatile.
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- #5
That's right, if you are going to invest in shares through the stock exchange, you have to buy at least one lot of shares, one lot is around 100 shares. If you buy Apple shares, it's around $180 per share, so at a minimum you need capital, around $18k. But if you buy shares via mutual funds, you can buy per share.
The future prospects of any kind of stock could be hard to determine. The fact remains that the demand of the product of that particular company may play a vital role and it all depends on the circumstances and long term goals.
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- #7
Many layman are confused about choosing stocks for long-term investment, although in general issuer companies that produce consumer goods are more stable, but we also have to consider several characteristics, such as having a high Return on Equity.
It is very important to understand the future of the stock market in order to understand many things. The future of a company could depend on many factors. So, we need to have a really broader view in order to determine the success of a stock.
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- #10
In my opinion, the easiest way to choose stocks as a long-term investment is to choose stocks with the highest marketcap, of course the price will be much more expensive than stocks with a low marketcap.
The demand of the product is quite important. Moreover, the financial position of the company should also be considered as well. Investing in a company that will go bankrupt soon would never be an optimal thing to do.
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- #14
A stock investor should be an expert in stock analysis both technically and fundamentally and also an expert in analyzing financial position. But to choose stocks, you also have to have a special strategy and pay attention to the combined stock price index.
A would-be investor should consider multiple factors with regard to making a decision to invest in the stock market in the long term. A principal factor is the manner in which candidate companies are pursuing opportunities that are bound to generate return's in the long term. If a company has a robust strategy for pursuing these opportunities, an investor can purchase its stocks.
I do not prefer to invest in the stock market. Having said that, there are many other markets that may seem much better. This also includes gold market and the Forex market as well.
If I were to invest in stocks for long-term, then I would consider investing in stocks that hold some kind of potential. Investing in artificial intelligence is something I my consider, so investing in companies related to artificial intelligence could be a viable option.
For long term investment, I focus on stocks of companies that has existed in good financial standings for at least 15 years.
