I have at least started back my Investopedia game but I am struggling to make time to follow the market and keep tabs on companies I like.Since I don't plan to buy and sell like crazy, I thought I would research a few companies I like(meaning those products I use eg Coca Cola and Johnson and Johnson) and see whether their financials look encouraging enough to purchase a few of their stocks.
It also means reviewing ratios and understanding their meanings and what it means for the company. I will be looking at the PE ratio,liquidity ratio,gearing ratio and Price Earnings to Growth ratio. I have my book with ratios reminding me of their calculations and what it means. I expect it will be easy once I get back into ratios. I will also look at other factors such as their Corporate Governance and their environmental and ethical stance.
The good thing is. Companies trading publicly have their financials available to the public as well as their Chairman's report and Corporate Governance stance.
There are a lot of things I don't know about the stock market but this is a great way to learn(through playing the game on Investopedia) and it should help me in the near future when I do start investing in the stock market.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment