Investing in individual stock market shares is not a simple task. You need to learn many skills to be a successful investor - which can be defined as someone who can achieve better investment returns than the average of the market over an extended period of time, or at least in the sectors in which you choose to invest.
There are many skills you need to learn to be successful. For example, you need to learn how to manage risk, how to trade so as to back your winning share picks and cut those that are doing badly, and how to analyze company accounts.
Where do you start when building a portfolio? Many people begin by picking shares in companies that look the most attractive financially. They use stock screens to find the most profitable, those that are cheapest based on a price/earnings ratio or return on capital, those that pay the best dividends, or otherwise come out well on one or more financial ratios. You can buy books that tell you which ratios, or combination of ratios, are those most correlated with future share price performance.
But this book argues that financial ratios are not the most important aspects to look at when selecting company shares. Heresy you may say. But the author will try and convince you otherwise.
This book explains what you should really be looking at if you are to avoid the dogs of the investment world, and pick the winners instead.
- ISBN13 9780954539634
- Publish Date 10 July 2019
- Publish Status Active
- Publish Country GB
- Imprint Roliscon Ltd
- Format eBook (EPUB)
- Language English