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How to Begin Researching Stocks, Bonds, Mutual Funds, and Other Investments

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Selecting stocks for investment can be overwhelming to a new investor. The process of researching stocks and investments isn't as difficult as it seems once you understand how to read financial statements. In fact, like Peter Lynch, I believe that the average investor can begin researching stocks provided they have the intelligence, discipline, financial resources, and temperament to compete with the professionals on Wall Street. In this section, you'll learn some of the things worth considering when choosing individual investments.
  1. Picking Stocks
  2. Buying and Trading Stocks
  3. Financial Statement Analysis & Ratios
  4. Value Investing
  1. Global Investing
  2. Taxes and Other Considerations
  3. Investing Questions You've Always Wanted to Ask (But Were Too Scared)
  4. Some Things To Consider Once You've Mastered the Basics

Picking Stocks

picking stocks researching stocks

Owning stocks is nothing more than owning pieces of businesses. Before we can get into some of the more detailed stuff - like how to value and analyze a company - we need to cover a few fundamentals about picking and researching stocks.

Buying and Trading Stocks

Stock Certificates

Once you know which stocks you want to buy, how do you actually go about doing it? If you want to know the difference between a market order and a limit order, or learn a few basics about how you can conservatively use very limited option techniques to build a position, pull up a chair. Class is in session!

Financial Statement Analysis & Ratios

Magnifying glass on top of newspaper stock reports

Reading an annual report is key to being able to value a company. With a little bit of practice, you can learn how to look behind the numbers and see what appears to really be going on with the company. Concepts such as accounting goodwill, depreciation, and diluted shares outstanding can begin to make sense! These lessons are not just for those who want to value stocks. Many small business owners have their life savings invested in a family company, such as a restaurant or a dry cleaner. They are designed to help you understand and better manage that extremely important family investment.

Value Investing

Warren Buffett

One of the most successful stock picking and investment methods in history is value investing. Started by the famous Benjamin Graham, the value investing approach - either in its pure or modified form - has allowed many investors such as Warren Buffett, John Templeton, Peter Lynch, Charlie Munger, Bill Ruane, Eddie Lampert, Lou Simpson, and the guys at Tweedy Browne & Company, just to name a few, to amass fortunes in the hundreds of millions, or even tens of billions, of dollars. These resources are designed to help you understand value investing and how you can put some its concepts to work in your own portfolio.

Global Investing

International Banknotes

In today's markets, you don't have to be confined to the United States when looking for great businesses. Although not without risks, there is much to be said for global investing. In fact, despite owning a collection of businesses and managing my own equity portfolios with tremendous success, my personal accounts maintain a global trading investment with one of the well-heeled Park Avenue private money management companies, allowing me to own shares in companies from the Netherlands to China. These resources should help you begin to do the same thing.

Taxes and Other Considerations

Tax Forms

It may seem like a lot of work, but good tax planning can take you a long way in reaching your wealth goals, whether through investment, work, or a combination because it helps you keep more of each dollar you earn. Given enough time, those seemingly small amounts can lead to thousands, if not millions, of extra dollar due to the power of compounding. These articles, resources, tutorials, and lessons are designed to help you understand how the strategies you choose can help or hinder your wealth building due to tax considerations.

Investing Questions You've Always Wanted to Ask (But Were Too Scared)

Investing Questions You've Always Wanted to Ask about Researching Stocks

You know the questions you've always wanted to ask but were afraid to in case you looked like you didn't know anything? Relax! Most of the people around you are probably in the same boat. Here's a list of some of the common things that people wonder about when it comes to Wall Street. Whether talking with friends or chatting at a cocktail party, a few of these articles will help put you miles ahead of everyone else when it comes to understanding the nightly news and your portfolio.

Some Things To Consider Once You've Mastered the Basics

More Researching Stocks Articles

Once you've gotten the basics - you know what stocks are, how to research them, how dividends are paid, and more, all of which is available in the other sections of this site - there are some things that are important to learn. These concepts are still geared toward the beginner, but you shouldn't tackle them until you really have all of your bases covered and won't get turned off or intimidated by lingo such as 'capital', 'securities', 'market capitalization', and more.

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