Finding Investments Through Your Interests

September 29, 2019

When you manage
your own investment accounts, it can be hard to find stock you want to buy.
Businesses to invest in are in no short supply, but finding the right ones can
be tricky, especially if you’re not well versed in finances or have an ear to
the ground on what are the up and coming businesses.

A good way to
get started is to follow your interests and expertise, so as to properly gauge its
future – and the return of your investment.  

For example, if
you know that people who use vacuums want a certain feature. You find that
there’s an up and coming business that is finally answering that demand. Here, you
may feel like that stock will do well, as people will want their product!

How can you
best find investments through your 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
building computers, playing 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.

Look at each
business carefully to make sure it’s something you feel is worth investing in,
whether or not they fill a niche in their industry, and so on. Then you’ll make
a list of promising businesses from these searches.

Aim to have at
least five to ten of these, if not more.

Check Their History

Here, you’ll
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, so you’ll have to take a chance. You can also see if anyone
has done their research on the company to make an assessment of their future as
a public company.

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.