Long Term Investment: Which Stocks Do I Choose?
March 22, 2019
There’s a few basic things I think a person should look for when choosing which stock to invest in long term. First: Stability of the company. Most people are not risk takers. They like safety and security. The vast majority of people like to know their money just wont disappear into a black hole one day because the company tanked. Basically Fortune 500 companies are a safe pick. For example everyone knows IBM isn’t going anywhere. They’ve been around forever.
Second: how long the company has existed. This is similar to the first but there’s plenty of successful tech companies that haven’t been around for a long time. Age of the company isn’t the only factor but it is something you may want to keep in mind.
Dividend yield (A.K.A. how much interest the stock pays you) — Some stocks pay you for being a shareholder. In my opinion these are the stock you want to hold on to long term. You make money from simply owning the stock. Sounds like a no brainer to me.
Last but no least do as much research on your potential stock as possible. The more you know about your stock the better. Knowledge is power.