Finding Investments Through Your Interests

When you manage your own investment accounts, it can be hard to find stocks you want to buy. There are plenty of businesses to invest in, but finding the right ones can be tricky, especially if you’re not well versed in finances or don’t keep up with economic and industry news. A good way to get started is to follow your interests and expertise, so as to properly gauge a company’s future – and the return of your investment. How can you best find investments based on your personal interests? Let’s take a look.

List Your Interests

The first step is to list your interests and practical knowledge. This can include things like computers, video games, arts and crafts, beekeeping, and so on! Whatever you would consider yourself well versed in is a good thing to put on the list.

Google It!

Now that you have your list, it’s time to hit up the search engines. Look for public businesses, meaning that ownership is split between stockholders that exist outside of the business. Evaluate each business carefully to make sure they fill a niche in their industry and are managed well. Then you’ll make a list of the most promising businesses from this research. Aim to have at least five to ten of these.

Check Business History

Start to check the business’s market history and see how their company has fared over time. For newly public companies, there won’t be much of a history to work off from, which indicates a greater risk. You can also look at online analysis that offers an assessment of public companies. Many financial ratings companies offer “buy, sell, and hold” ratings.

If you’re looking at an established company with a history, check that they haven’t been on a long-term decline. Look at a five-year history, if possible, to get a good sense for their stock value. Ideally, you’ll want to find a company that is on the rise after a recent decline or that has been on a consistent upward trajectory.