First of all, it’s never a good idea to put all of your money into a single investment. Always keep your portfolio as diverse as you possibly can. It is very common to ask questions such as “best company to invest your money”. It’s ideal to conduct research on a few companies or products at a time and invest regularly. Be sure and join an investment newsletter that offers the top picks by the experts who really have an innovative approach to the stock market.
A beginning investor should never begin with an individual stock. If you’re new and just starting with your portfolio, it is much riskier to buy an individual stock than it is to buy a low-cost mutual fund that includes a group of stocks.
Regardless of your experience level a lot of people recommend that “FAANG” is a way to go, or at least used as a starting point. These are the “Big 5” Facebook / Amazon Apple / Netflix / Google. These 5 tech giants have their hands in just about everything these days and still have the potential to disrupt the industries and economy that they don’t already.
Do some research on all of the industries these big 5 are involved in to help you make your decision on the best company to invest your money in. Consider competitors as well, such as Disney, Microsoft, Yahoo!, Baidu, etc… Baidu (BIDU) has a huge stronghold in China, and is slowly growing on a global level.
Always consider factors like debt, price, and valuation when investing. Do research on a company’s background and current financial situation to find out if it’s in debt. The more debt a business is in, the more money it has to spend on payments and interests. Also, look into dividends, and the company’s history in paying them. Are the dividends being increased or not?
Don’t make the mistake in assuming that a stock is going to be a bargain just because the price is very low. You must understand why and how that price went down and if it is going to rebound. Volatility is to be expected on occasion as well, so don’t panic or be surprised over it.
Some classes or training can really go a long way – especially if you want to try and make a living with investing in the stock market. You won’t get rich overnight, but you will likely find success after a while if you learn about the common evaluation metrics, like price-to-earnings ratio, debt-to-equity ratios, dividend yields, etc.
One way to learn about the stock market and get some ideas on the best company to invest your money is to join Capitalist Exploits. The newsletter is provided by professional money managers who track trends and capital flows to establish where the true value lies.