This section will focus on selecting stocks, although you can apply the same tools to other investment vehicles. Stocks trade based on the best estimates of the future of the economy, the industry and the company. It has also been said that the best way to predict the future is to understand the past. The goal of research into any potential investment, whether online or in your library, is to understand the history of a company and use this knowledge to decide whether the future of an investment is bright or dim. With this in mind, the principle behind research is to choose a stock or category of stocks for investment in combination with research into the company and the industry.
Many investors get their ideas in the simplest ways.
Whether you purchased a product, used a service, watched a TV show, viewed a Web site or spoke to a friend, the idea of buying a stock came to you in some fashion. This idea is the genesis of the investment process. Inc. All rights reserved.