TIP: How to Pick your Winning Stock

Hapi Balentayms!

 

How did you celebrate your heart’s day?

Me and wife went out to just watch movie Deadpool. Its very hilarious!

Kung single ka, pray pray lang at darating din yan. Sabi nga ni Lola Nidora, sa “tamang panahon”. Peace! 🙂

Today I want to share with you on how you will choose your winning stock for your long-term stock investing.

Before you buy your share in stock market, it’s very important to know your strategy. If its short-term, target price or long-term strategy.

Here are the guidelines:

Bluechip company. The company that you will choose should be in the industry for more than 10 years already.

These are stable companies and continue to progress until now. Like, Ayala, SM, PLDT, Jollibee and many more.

Key people. You should know and check the background of the key people in their organization such as their CEO, president and board of directors.

You must check their expertise and track records in their own field.

Dividends. In my view its one of the important factors in choosing your winning stock especially if your strategy is for long-term.

This will give you a relief and it’s like a reward for your sacrifice in long-term investing.

You can visit the company website of your prospect to know if they are paying out regular dividends to their shareholders.

In my case, even though my portfolio in PLDT is negative now. I’m not worrying because I know that they will give me dividends in the coming months and my strategy is for long-term investing which will gain for the years to come.

You should know how they make money. It’s important for you to know their business model because you will know how they earn money.

Another thing is you need to find out who their customers are. In this way, you will know how they treat and serve their customers.

Lastly, it is good if you are an existing customer yourself for you to know how their products and services are doing.

I bought shares in Jollibee and I’m also their customer. So, I know if the people are still enjoying and satisfied with Chicken Joy.

There you have it. Once you have picked your winning stock. Its time for you to follow your chosen company by using Fundamentals;

  • You have to reads News for the company you’ve chosen. Good and bad news.
  • You need to know the update in their key people.
  • You should be updated with their competitors.
  • You also need to know the current events here and abroad. Such as calamities, war, global News and others.

Here is the bonus tool for you. You can use the google alerts tool for you to receive updates right to your inbox.

Go to Google and type “google alerts”. Type your chosen keyword (e.g. PLDT) and click “Create Alert”. There is an option there on how you want to receive the alert.

 

To your financial success,

Marvin Basa

About The Author

Marvin Basa

Marvin Basa is a financial literacy advocate who helps Pinoys to have successful financial lives.

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