A Beginner's Guide to Value Investing
By Kenji A Tay
Beginning to invest in the stock market is not a joke, and for the ordinary man or woman in the street, it can be a daunting prospect. There are so many companies to choose from, so many dishes at the stock market buffet that it can seem impossible to decide between them. The tension of making your pick, and then seeing if it grows or falls is one of the things that drives those who ride the stock market, but if you really want to beat the odds and make a profit, then you should consider value investing. This is not a simple thing to grasp, which is why everyone needs a value investing for beginners guide to the market.
The beginning of value investing is to search for company's stocks which are currently below the value of the stock as issued by the company. These stocks can also be called public stocks, and provide you with a high yield, and a low risk. People such as Warren Buffet have practiced with the field of value stocks, and his value investing for beginners would probably advise you to purchase stocks in big-name companies while they are suffering under bad publicity - so every time McDonald's is sued for making people fat, or beverages are is shown to rot kids' teeth, you should buy up their stocks like crazy. You'll then have to sit and wait until people forget about the story, and start buying shares in McDonald's again.
You can also practice value investing by seeking a company that you support. You need to invest in companies who have been going for a long time, more than a decade at best, and have a proven record in share price increase. Make sure that you thoroughly investigate the business, to ensure that it isn't about to go bust. The value investing for beginners guide would also remind you that this is a long-term waiting game, and that people who want the highs of sudden wins at the stock market should look for other types of shares.
Investors should also make sure that the company they choose has a USP, or Unique Selling Point. This is the thing which makes it different from other, similar companies, or the product which everyone is desperate to have. Check that the company has the trademark to these products, and then put money into the stocks like it was going out of fashion. Once you have found a great company to support, with a fantastic product, or a well-known company whose shares are currently bombing, then you know that you will get good value for your money.
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