How to Invest Money - 5 steps

Step1

Think of Boring Stocks. When you’re first thinking up companies to research for potential stock purchases, think dull. Think about what you use every day – tape, staples, computers, shoes, printer cartridges, paper, and dishes. What companies make these items? You can start your research there.

Step2

Write Down Your Ideas: When you’re trying to think of companies to research, consider those not widely exposed to the population that have a product (shoes, tacos, computers) you think is excellent. You might find a good company with a lot of room for profitable growth.

Step3

Research Your Choices: You can find numerous places on the internet to research a company’s debt, etc. Yahoo offers such services. Look at the links listed below to find good places to learn more and research.

Step4

Check the Company’s Debt and Earnings. Make sure the company operates with low debt and that they have consistently increasing revenue from quarter to quarter. If they have high debt, trouble can happen when times get tough.

Step5

Continue Learning. Learning how to invest your money is a process. Read books by Peter Lynch, Ric Edelman, and Warren Buffet. The books are better than magazines because, in books, you can learn a process from successful money managers.

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