Types of Stocks to Buy for Beginners

Posted on 17 April 2012


You can engage in all kinds of different investment strategies if you are a beginner. But no matter which ones you partake in, you should always get professional guidance from a financial planner or advisor. You should sit down with them and be able to map out your financial goals and your plan in a comprehensive manner. Remember that a good investment strategy is much more than finding the top stocks to buy or to trade like a hot shot day trader. It is about doing a comprehensive assessment of your current financial situation and making a sensible plan from there.

One investment strategy that many people start out with is index investing. This is a fairly simple form of investing that should yield you pretty decent return on investments over time, especially for the very little effort that you have to put in or the extenuating fees. It really is one of those stock market for beginners strategies that you can start with, but you never have to graduate from. In fact, there are many investors who should never graduate from this strategy.

You can also engage in alternative investment strategies if you are conscientious about the environment. You can invest in a vast array of wind energy companies, solar power companies and electric vehicle companies. Really the number of green companies out there now to invest in seem endless.

You can also choose to pick individual stocks. Most people who do this use the value investment method of Warren Buffett. This is a strategy where you find good companies that are undervalued by the market. Usually you want one that you think is at least 20% undervalued to make sure that you have that margin of safety that Benjamin Graham advocated for back in the early 1900′s in his famous book, Securities Analysis.

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