How do i find what stocks are worth buying!?
Hi everyone. I am 18 years old and just graduating from high school. I have around 2k in my E-Trade account that i plan on buying stock with. I am looking to start as soon as possible but am having trouble choosing companies to invest into. At first i though it would be "easy money" but boy was i wrong. There seems to be no rhyme or reason to chart fluctuations. All attempts to predict price gains results in utter failure. I even went to the extent to try simulators such as Investopedia. I invested in companies such as lvs, fuqi, riv, and len. i would buy at lower then average market prices but would watch as all plummeted by 10% or more. It just seems hopeless. All stock picking strategies i have read just give intangible information and horrible analogy's pertaining to the stock market. It seems no one actually knows what they are talking about. So i am asking all you successful, knowledgeable, and competent investors to help guide me. You must understand that i have absolutely no market education or individual help. Every thing i have learned (which is very little) was attained though observations and some online reading. I would love to know what you look for in a company. also tell me how you would find that information. tell me what to look for including volume increases or decreases, price changes, market caps, ect. ALL POSTERS BE ADVISED: .be detailed .simplify confusing terms .provide useful information. .give success stories .give failures .give examples Put time into your posts and my the best man win. thank you for your time! I am extremely grateful! e-mail- email@example.com
All stocks are worth buying to someone, otherwise they wouldn't exist as a traded commodity. You have to realize that this is a very personal question - what your worldview is on a variety of factors both about a particular investment and what you want to achieve vs the risks you want to undertake.I suspect you were not asking for this sort of general advice and you will likely get a variety of opinions from other sources that you may initially value more. I urge caution. My own foray into investing was, to put it in the best possible light, not an unmitigated success!! I sought the advice of others and took it without understanding basically anything. The advice wasn't necessarily bad, it was bad FOR ME. They were active traders and I was a 'buy and hold' person not willing to put in the time to track market movements and react. Now I know better.Will you?
The cost of a stock has nothing to do with its value.If you are shopping for stocks that are in a certain price range, then you should NOT be investing in the stock market at all.You see, when you are buying a share of a company… you are doing exactly that.You become part owner of the company. And depending on how many shares you own, that’s the percentage of the company you own.Here’s a simple example of how the price of a share doesn’t matter at all:COMPANY A:Is worth $1 millionHas issued 10 sharesEach share is worth $100,000One share means you own 10% of the companyCOMPANY B:Is worth $1 millionHas issued 100,000 sharesEach share is worth $10One share means you own .001% of the companySo… in those two examples… both companies are worth the same exact.But, if you bought one share of Company A, you’d own 10% of the company. You’d also get 10% of it’s profits.If you bought Company B, you’d own .001%. You’d only get .001% of it’s profits.Here’s another way to look at it…Here is the price of one share of Berkshire Hathaway:It went up $570 today, but that’s only a .22% increase.Here is the price of one share of Walmart:It went up 14 cents today, which is only a .18% increase.If you are buying stocks based upon the numerical price, then you will just be throwing darts at a board.You’ve got to figure out the true value of a company based upon a variety of different metrics, like P/E, P/B, debt, etc.That’s why investing is very subjective to different people… it depends on what you are looking for in a company.
Is UGP stock worth buying?
A quick glance at UGP's financials gives me the impression that it may be worth looking into, but before you invest you should know what the entire company is worth on a conservative basis based on your own research and judgment. If you do not have the skills/judgment to value a company, than you should not pick stocks on your own! You can buy the shares at any time before they are split and still get four shares for every one you own. Keep in mind that if your 1 share is selling for $80 before the 4:1 split, you will then have four shares that sell for $20. So essentially you will not gain any benefit from the split, except perhaps additional liquidity/trading volume (which isn't very important unless you're a large institution). Bottom line: do your research and know what you're buying. If you can't value a company, you should not buy one!
Is GE worth buying stocks from?
I am overweight in GE now, and hoping to buy more at every dip. The industrial side of the business by itself is worth 12 dollars a share even if the economy never recovers. GE capital is worth 8 to 10 dollars. You missed out on the 6 bucks a share when some idiot analyst made a 9.9 billion dollar math error and gave negative guidance. I jumped in with both feet. Never believe an analyst when your own numbers do not agree. They cut their dividend as a cash conserving defensive maneuver so the dividends are small now.
Are buying stocks worth the money?
What if you held it for 80 years? One way of equating a cash flow to a value is called net present value. This requires the concept of a risk free rate or a discount rate which is the rate available to you as an investment without risk. Usually the 10 year US Treasury bond rate which is currently about 3% is used as a proxy for this rate. Imagine being able to invest at 3% per year, how much would you have to invest to provide for each of those $10.50 dividend payments. For the first $10.50 you would have to invest $10.50 / 1.03 which is $10.19. For the second $10.50 you would have to invest $10.50 / 1.03^2 which is $9.90 and so on till infinity. Therefore the value of the share can be no more than the sum of all the investments you would have to make at the 3% risk free rate to pay for every dividend. This sum is the summation of an infinite geometric sequence and works out as: Po = $10.50 * ( 1 / ( 1 - 1 / 1.03 ) - 1 ) .: Po = $350.00 Therefore if you expect this stock to always pay $10.50 a year forever, then the value of the stock can be no more than $350 otherwise you could just invest $350 at the available risk free rate of 3% per annum to get $10.50 a year. Now people don't expect the company to always stay at the same valuation and dividend but rather people expect it to grow so it's usually assume that the company therefore the dividend will grow at a certain rate and when you factor the growth into the equation, you have what's called the Dividend Discount Model or DDM equation. As a summation of an infinite geometric equation, the summation only converges to a value under certain conditions, namely that the growth rate is less than the risk free rate, if it is more than the summation will not converge. To handle situations where the growth is expected to be larger than the risk free rate, there is the two stage DDM.
BYJU’s is not listed on BSE or NSE. You cannot buy it normally. But yes if the Company is offering it’s stock through Private offering or Convertible debentures or any if they are offering Term Deposit (Later as a Investor you can be eligible for share/stock purchase, if the company is honest and offers the same)
Is Ford stock worth buying now?
If you have the money to invest and are in it for the long term I say go for it but make sure you set yourself a limit of what you want to invest. Don't expect it to fly out the door overnight and realize the stock market is a guessing game and a gamble like a slot machine. The market has been in bad shape for years so pay attention to it but do not panic every time in fluctuates. If you already have a broker and you get dividend checks try using that money towards stocks so you have nothing out of pocket. I have been investing in a stock called ITRO.OB which is a "green" company which I expect it to do well in the next 2 years. Be patient I think Ford is a great buy right now.
Who knows. I would stay away from individual stocks because:It is just one company. Anything can happenThere are too many unknown unknowns and known unknownsWho could have predicted that Apple would come back from the dead in the 1990s or would go from strength to strength after Steve Job’s death?Stock picking is against the academic evidence. Only a few professional investors beat the market this way. DIY investors don’t. Sure they beat it over 1, 5 or even 10–15 years. But not over a 40–50 year careerTime is money too. Beating the market by 0.1% isn’t enough to justify all the research.Also on Apple, I would make the following points about the risk:Competitor risks - the iPhone is now seen as overpriced by many consumersSaturation - many consumers have 1–3 nice iPhones alreadyThe trade war - and how it impacts on ChinaSocial and political - the `fightback` against techLeave the stock picking to the 1%-2% of people who have shown they can do it over a 30–50 year period.Most people fail stock picking. I read about investing everyday, but I don’t think I can beat the market, despite knowing more about this topic than the vast majority in society.Those that do beat the market short-term, if they are DIY investors, are usually lucky. The luck runs out. Over-performance doesn't last.Some readingHow to get rich investing4 things which separate the wealthy from everybody elseTop 5 Warren Buffett Book RecommendationsIs stock picking ever rational?