| There are several factors that you should consider | | | | company and do they have a good history of |
| before buying stocks. Great stocks are ones which | | | | success? Find out about the CEO and directors, do |
| rise in value over time. However, what factors should | | | | they have a good history of running this type of |
| you be looking for to determine which of these | | | | company. A company with poor trading figures that |
| "great stocks" to rise? | | | | has just acquired a strong CEO may be about to |
| Here are three of the most important things that I | | | | change direction and may become a great stock to |
| look for when looking to buy a great stock: | | | | buy. |
| 1. Consider the history of the stocks. If a stock has | | | | After you have conducted your research and the |
| shown to improve in value consistently over a period | | | | stock meets the criteria specified above then the |
| of time it is likely that the trend will continue. This | | | | next step is to ask for opinions from others. If you |
| sounds fairly obvious but it also works. You do | | | | have a reliable telephone stock broker, you can ask |
| however need to check that there are no | | | | him/her for advice before placing the order. |
| uncertainties or trading inconsistencies that may alter | | | | However, please remember that you should not rely |
| the upward movement. This type of investment is | | | | solely on other people's tips (i.e. Stock brokers, |
| likely to bring lower returns but higher stability than a | | | | newspapers and friends). Tips are opinions and your |
| more volatile share. | | | | own opinion on the stock to should always be |
| 2. Do they have a good business plan? If a company | | | | backed by your own research so you have a better |
| does not have a good viable business plan for the | | | | understanding company. |
| next trading period and a good planning strategy for | | | | If you would like more in-depth information on how |
| the future, then it is unlikely to achieve good profits | | | | to buy great stocks, we recommended reading as |
| or growth and may adversely affect the value of | | | | much on stock investment as possible. Some of the |
| your investment. Always check that any company | | | | books that I've found helpful are "The Little Book |
| that you are planning to invest in has a good business | | | | That Beats The Market" by Joel Greenblatt and "How |
| plan. It will be your money that they are spending. | | | | The Stock Market Works: A Beginner's Guide To |
| 3. Management history. Who is the owner of the | | | | Investment" by Michael Becket. |