investments stocks, how to invest for the beginner
about investing in stocks. This time we talk more about how to select shares for investment.
Personally, I am not as some kind of expert on investment. In its operations, I have long known of the strategy. Sometimes I add in them something of their own. Investing in the stock market essentially differs little from investing in mutual funds. Just need to select the assets, to invest money in them and wait for at least a year. After the operation the selection of assets repeat and calculate profit or loss.
I will give here two strategies of selection of the shares and the two strategies of investment in the shares.
Before you start to tell a very important thing. For investment in shares choose only the larger companies. These enterprises are supported by the state. And even in the most difficult moments of assistance is provided, first of all, of them. For example, I am sure, That in the case of a banking crisis can collapse all banks, and Sberbank, which investors are still called «our everything» will pull up to the last. This Bank is not just the Bank - it is a national brand, a symbol. Save it " a matter of honor for the state.
And still. Investing in General, and investing in the stock market - this is a long process. I would not recommend you consider the time intervals for investment or properties that are shorter than 10 years. The more short stages - the risk is very high.
For 10 years can happen all. There will be years when you'll play of market or keep pace with it. But the crisis will not last forever. Behind them comes growth. And the crisis for the investor it is just an excuse to buy a company with good management at low prices.
How to select shares for investment or properties? Strategy first.
As said Warren Buffett, -«...do not select the paper, choose a company...» In fact. Many investors are too focused their attention on paper, and forget what stands behind it. The first strategy selection will teach you how to buy the company, for which there are shares.
How to analyze a company, shares of which are you going to buy?
There is a wonderful financial document, called the financial report. Publish it required all joint-stock companies. And are required to provide truthful information. This is monitored by the Federal service for control over the stock market.
Here everything is clutching at his head, and begin to weep, saying, behold, the financial report, it is so difficult! How to study it? In fact in the financial report you be interested in just a few numbers. For you only important key points that basis.
In addition, if you want to invest in the shares and to receive for it money in the form of good dividends, then you just need to learn to read such reports. In them is hidden the truth of the company. The numbers don't lie.
On what indicators to watch?
When working with the financial report pay attention to the 3 important parameters that characterize the work of the enterprise and its development prospects in the future.
1. Revenues of the company.
2. The profit of the company
3. Credit debt
Translate all this in a normal language.
Revenue
Revenue is largely seasonal factor. Look at it should be in the dynamics of its changes in the first, second, third quarters of the year. Then through half a year, year t so on. Ideally revenues in the first place should strive upwards, and the second must be greater than the rate of inflation.
The profit of the company.
It is clear that we are interested in companies with a big profit. If it is small it is bad. The more profit and than she actively growing from year to year, the better for us. Then the enterprise is developing.
However, if the income is growing too quickly - it should become for us a worrying factor.
Note. Do not confuse the revenues from the profit. Revenue is the total amount of money received by the company before payment of taxes. Profit is what is left after and went to work.
Credit debt.
It should not be more than the half of the amount of the net assets of the entity. For example, if a CA is 100 000, and the credit indebtedness is 60 000 - is cause for concern. Thus, the credit debt of more than 60% of the net assets of the enterprise - it is the point of no return. I would be wary of dealing with such companies.
Well and it is clear that plus for us would be if the debt is declining, not rising.
You can also add here the Amount of net assets.
The higher is the indicator - the solid of our organization. If you have a multi-billion fortune to the account of the company it increases profit and revenue, reducing costs and expenses - it says that the company is well supplied manage this money.
The fact that large assets control much more difficult than a little. Therefore, the existence of large amounts of and ability to manage them for a long time can not tell us about the high qualifications of the managers.
Strategy of the second.
The following strategy is based on the dividend yield of the paper and its undervaluation.
According to this strategy we are interested in being harmless the company from whom all good, namely those companies which have at the moment some problems. It is not important, what are the problems, it is important that as result of their presence investors have lost interest to this paper, and she, respectively, began to lose in the price.
Here we are interested in the shares, which are only going to grow. Calculate such papers will help us strategy Higgins. Was an American economist. In the basis of this strategy is the dividend yield paper.
What would you have been clearer, I will say a few words about the operation of the market.(it should have a separate article on this subject)
The market is ruled by greed and fear. Remember it. The absolute majority of private investors in its work be guided by the fact that make the big players. As soon as someone from the «big» makes a big deal, for example, buys a large package of shares of any Corporation, all at once rush to do the same. This causes sharp growth of prices for paper. And so it continues until this very large player or someone else of the major players decides not to sell the shares and make money at it (the price of the rose)
He sells, and all at once begin to do the same. The price goes down, carrying with him the money of those who only entered the market. As a major player switches to the other asset. And the company itself, issuing this paper, may be perfectly in order. Just a sharp change in demand or supply as dramatically change the price for the asset.
To change the prices can affect anything. From simple rumors, prior to the annual reports on the results of the work. The trick is that the undervalued at the present moment the company may in the future show very good results. (because sooner or later the attention of the major players switch to them)
The market life resembles a spring. It is compressed (crises) and opens (periods of growth) They replace each other, as times of the year. The recession should always be growth. The growth of the recession. There is no sense to be afraid of this. You just need to use it. If today we can see the decline in the economy, falling stock prices and the flight of most of the investors from the market - it is for us can serve as a pretext to buy undervalued shares good companies, which then (when the growth) will bring us money.
In times of rapid growth on the contrary there is no sense to buy the securities at exorbitant prices. There is a sense of sell and earn money. Getting ready for another period of decline, and pick up the assets for the following purchases.
If you want to succeed in investing buy when all sell. And sell when everyone is buying! It is elementary.
But let us return to our strategy of selection of the undervalued shares.
As you already know you should choose only from the number of «blue chips» of the Selection made on the basis of the dividend yield. The higher it is, the greater the share undervalued by investors. Time will pass and they will come back to her. Begins its growth. But we will be there and will collect the «cream»
The dividend yield can be found on various analytical sites, and you can calculate yourself.
What would find it divide the annual dividend of the present value of the shares and will receive the dividend yield. Find out the value of the shares and the dividends can be on different sites. I recommend to go to the sites of MICEX and «Finam»
So, out of 10 «blue chips» we choose 5 of the company with the greatest Äèâåäåíäíîé income. Then, from the list throwing a company having D.D. higher than that of all in the top five.
After that we send our money to invest in shares of the four companies. Distribute in the following way. On the first two places, put the company with the lowest price per share. In the last two places we put the company with the highest prices.
In the first two we invest to 30% in each paper. In the second grade we invest 20% in each paper.
1. Share of 30%
2. Share of 30%
3. Share of 20%
4. Share of 20%
And that's all. Now, a year later, you repeat this procedure. Or it will remain the same, or you sell a portion of its assets and buy the other paper. In this case, you will already sell of paper, which grew in price.
How to invest in shares.
One-time replenishment
You can buy and sell of paper, once in a year. This is normal. Saves you from having to constantly keep track of quotes.
The strategy of averaging.
In contrast to the first strategy, here you enter the money gradually throughout the year. That is, you break their capital for investment into 4 parts and invest them every month.
This can be useful when the paper costs will go down, and you for the same sum will be able to buy more lots.
To investing in the shares can be used and one and the other strategy. The main competently take action and not to violate the procedure of investment. If you decide to make money every month - bring it every month, not once in the quarter.
