Beware "Buy These Stocks" Lists

Many of us, who have ever been interested in investing in stocks, have wondered where to start. Tell me if this Google Search sounds familiar, "Best stocks to invest in!" If so, you are like most people who want to invest in stocks. Also have you noticed that depending on which website you go to, you get different stocks? That is because everyone has their own preferences on what to invest in. So, I strongly encourage you not to solely listen to these lists. Even this morning, I received an email with a "Must Buy Stocks" list. You will not find one of these lists on our site for this very reason.

As you go throughout this article please know that you should NEVER invest in anything you do not understand.

Here are some of the factors you need to consider when picking stocks.

  1. Not a reliable track record.

  2. Personal bias/agenda.

  3. Not aware of your personal morals.

When selecting stocks to invest in, there are definite features that you want to pay very close attention to. One of these features is the stock's overall track record. You want to find a stock with a positive track record of at least five years.

Here is a company with a positive 5 year track record.

Here is a company with a positive10 year track record.

Why is this track record so important? Well, if you are like most people, you want to take great care of your money. You have spent your life working for money. It is time to change the game and make your money work for you. This track record is insurance! It shows how well a business has done over time. You would like to see this positive trend.

The next important reason to avoid these "lists," are because of personal biases and personal agendas. There are many factors that these lists do not take into consideration for the reader/consumer. One very important factor is our moralistic and/or religious identification. For example, if I was a vegetarian, I would not invest in a slaughterhouse. Or, if I were Amish, I would not want to invest my money into a business that did not line up with my religious affiliation. Though I used vegetarian and Amish, there are no negative emotions towards either, simply an example. These are some things that you should pay attention to before you invest in a company, regardless of their track record.

ALWAYS, do your research on a company before investing. Ask yourself questions about them that you HAVE to have an answer to before you invest in them. Such as, "What is the company's mission? How do they hope to accomplish this mission? Do the companies operations agree with my morals and who I want to be associate with?" These are just a few! Feel free to add and take away any that you seem fitting.

Also, some companies pay companies that make these kinds of lists in order to have their name featured, whether it is a reliable company or not. Please be aware and do your research. I am not saying that there will never be a good stock on the list, there are a few, but be careful. Some companies that are featured on the list are one-hit-wonders, peak, and then decline rapidly. This is a risk of the stock market overall. In order to beat this, sit down and ask yourself, "What does the future look like? What companies can I invest in that I am almost positive will contribute to this vision?"

If you can find these kinds of stocks, you will do relatively well in the stock market. There will always be more to learn about the stock market, but just be aware that these lists are just a reference that can be manipulated, not agreeable with your morals, and biased in order to pass personal agendas. The best way to beat these lists is to do your research.