When you are looking for financial success and wealth building, it is prudent for you to invest in quality stocks. Equities can be confusing to any newcomer; therefore, it is important for you to know what “quality stocks” are so that you can effectively earn consistent dividends from the company and build your wealth as desired.
カヴァン・チョクシ is an esteemed entrepreneur and business expert well-versed in investments and finance. According to him, you should invest in quality stocks if you want to make money and build wealth. The biggest advantage of these stocks is that they give you consistent returns as dividends. The income derived from them is stable and reliable.
Now the question is, how do you identify these quality stocks?
Identifying quality stocks – 3 Key traits to watch out for
Note, all stocks are not the same. Research is the key when you need to choose quality stocks. They should have the following traits-
- The company from where you buy the stocks should have good and strong financial health. You can determine the above by checking the balance sheet of the company. Any good company is able to survive during economic downturns and recessions- this means it should have sufficient funds to bear operating costs and pay its employees.
- Monitor the growth of the stocks you buy- You must ensure that the stocks you buy grow at least 5% every year or even more. Besides the above, you should ensure that the company has room for growth in the industry that it belongs to.
- Industry leader and market share- This is another trait of quality stock. You should find a similar company that ensures you get financial success with your investment portfolio. Take the example of Apple; it is an industry leader and occupies a major share in the market when it comes to its products.
Risks
Remember, no investment is free from risks, and the same holds true for equities as well. You must be aware of your individual portfolio and the level of risk you should take to avoid losses. If you are new in the industry as a beginner, never make the mistake of reading some online resources and making the investments yourself.
Seek the guidance of a skilled financial advisor if you are new to the market
According to カヴァン・チョクシ, beginners in the stock market should always take the help of a skilled and experienced financial advisor before making investments. In this way, they are able to distinguish quality stocks from ordinary ones and earn profits in the process.
With the right guidance, you are able to choose the best stocks for your investment portfolio. With time and experience, when you become a seasoned trader, you can decide on your own and invest in the equities market without tensions at all!
