Novice Stocks: How To Choose Stocks For Long Term?

Novice

A number of magazines recently reported on the topic of long-term shareholding earning dividends.

There are some differences between the investment themes and the popular trends of the past few years, which are just in line with the tastes of different readers.

However, the trend operation is very difficult, and many people may be jealous, but it is quite difficult to carry out it.

By contrast, buying a blue chip stock for a long time seems to be much simpler.

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Long term shareholding is a simple, rather boring investment method, and only in the annual distribution.

Although Grace Groner, an old staff member of Abbott, bought 3 shares by 60 dollars.

Such an investment concept is not difficult to understand, but it is not easy to choose a company that can sustain that competitive advantage and profit for so long.

I saw a lot of people discussing in a financial discussion area. At present, what stocks of Taiwan stock are in line with this feature? At the beginning, some people proposed two companies, and then another four or five people were recommended. There were not many discussions, which accumulated more than ten files, and it was also rapidly accumulating.

I think such a vision, whether many years ago or even many years later, will keep repeating, but in any case, most of the people still have no will or confidence to carry it out.

The two most important factors in long-term investment are the choice of good stocks that can be held, followed by the price, but it is often the first point that makes it difficult for people to find answers.

Now, for many people, the first thing that can be thought of is TSMC, TCP, Sinosteel and Chunghwa Telecom. But when it comes to the end of 08, even though many people are aware of it, they never have the confidence to buy it.

Where is the problem?

I think part of the reason is that investors expect that the market will continue to fall, so more greedy hopes can be bought at a lower price. A large part of the reason is that even if the market is pessimistic, it will lose faith in the future of these companies.

Once there is no confidence, even buying is questioned, not to mention that it will be meaningless to brave the stock market in the future.

As for the identification of good stocks, everyone has their own different ways, and just like Buffett's partner Meng Ge said, each person's ability range is different, and the target selected within the scope of ability will also be different.

In the past one or two years, I have made some adjustments to the long-term investment targets, and have changed a little in the direction. So I share my experiences with my friends.

Because it is possible to have short-term misjudgement in the light of financial figures and immediate situations.

How to choose a good stock that you think is suitable can be judged as follows:

1. the company's financial fitness and profitability basically conform to its own standards.

2. the company's position in the industry is very difficult to replace. At least, it can be seen that in the next few years, there is no need to worry that any company will have the opportunity to take the place or compete with it.

3. if the stock market is closed or closed for a long time in the future, I will not worry about investing in the company.