| json_metadata | "{"app":"musing/1.1","appTags":["stocks","money","investing","business","investors"],"appCategory":"stocks","appTitle":"How do I find good stocks?","appBody":"<p>Just a heads up, this might be a longer answer than you had hoped for and I might get off topic a little bit, but if you read it through I promise it will be worth it. </p>\n<p>I am going to assume you are totally new and you haven't done anything yet. </p>\n<p>There are a couple of ways you can handle this. You can either open up a ROTH IRA with a broker or you can setup your own brokerage account through either Robin Hood or one of the other major investment groups that are out there. </p>\n<p>The thing you really need to decide is if you are looking at buying stocks to quickly turn around and sell for a profit like day trading or if you are trying to invest in stocks that you can hold on long term and get dividends to slowly but consistently grow your portfolio. </p>\n<p>If you are looking at more long term investments, something like a Roth IRA is a must. Once you have that setup, I would actually suggest that you not just look at stocks, but also look at things like mutual funds. There are some really great funds out there that are comprised of both stocks and other investments that can give you a really great rate of return for the money that you invest. </p>\n<p>The main thing you need to be aware of with mutual funds is your broker will probably take a commission on each of the transactions you make with your portfolio and sometimes there is a minimum amount you have to first invest to be able to buy in to a fund. </p>\n<p>If you are really interested in funds. I would recommend The Growth Fund of America offered by \"American Funds\". It has a very good mix of high dividend stocks as well as other investments. This past year I was able to get about a 6% return on my investment into this fund just from capital gains and dividends.</p>\n<p>Alternatively, even though most mutual funds are heavy in stocks like Apple, Google, etc, it can also still be good to hold some of them separately. Apple probably isn't the best example because their price has been dropping a lot lately due to underwhelming profit forecasts, but it still pays a good dividend so holding onto it isn't that big of a deal.</p>\n<p>I own some Ford stock that has done pretty horrible lately, but they still continue to pay a dividend of anywhere from $.15 to $.25 cents per share, so the returns are pretty decent if you can invest a good amount of money. </p>\n<p>Like someone else said here, look to see what some of the big movers and shakers are investing in. We know that most people are pretty into tech stocks and also pharmaceutical and energy company stocks. Those are probably some of the biggest holdings that the big wigs have in their portfolios. </p>\n<p>Investing in those same stocks will probably not steer you wrong in the long term.</p>\n<p>There are also many other mutual funds offered by American Funds that offer some really good returns on investment. One of the biggest things you want to try to remember to do is keep investing your dividends and profits back into your portfolio. This will allow it to grow exponentially over time. </p>\n<p>One of the best tools you can use is www.morningstar.com. It is an independent investment research site. I have used it quite frequently over the past years. Just remember to take a look at historic gains for stocks and also check to see what kinds of dividends they have paid out over time. I wouldn't worry too much about how much their price has fluctuated over time because that isn't always a good indication of what is going on. </p>\n<p>As with crypto that can sometimes be attributed to other factors in the market as opposed to the company specifically. </p>\n<p>Let's take a look at AFLAC. Their share price right now is about $44 per share. Over time they have show to pay out a five year average of $.83 in dividends. That is just about a 2% rate of return. That isn't great, but it isn't horrible either. </p>\n<p>Spend some time digging around that Morningstar site and see what you can find out. Remember to decide up front if you want to day trade or make long term investments and then move forward from there.</p>","appDepth":2,"appParentPermlink":"f3ecst2cq","appParentAuthor":"jehonathan","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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