Best Stock Investments

What are the best stock investments available today? Many people want the answer to this question.

Of course, if there was a simple list you could go through and invest at your leisure, everybody would be wealthy. The bottom line is, if you really want to become wealthy from the market, you need to learn how to do your own research and find the best stock investments on your own.

So where is a good place to start? Always begin with well run companies, who’ve exhibited a long history of profitability.

Many investors mistakenly believe that larger, well run stable companies don’t offer the same potential for return that a smaller, far more risky company might.

While in some rare occasions this may be true, by far more often than not the best stock investments are the everyday ones you hear about all the time: coca cola, Nike, Reebok, etc. They may not offer the flat out profit return that a smaller company may, but you can be almost certain to make a positive return on your investment.

Here’s the catch: whenever making this investment, always be sure that the company is selling at a reasonable price. This is the secret behind Warren Buffet’s astounding success.

While there are certainly many well run companies on the market today, if they aren’t selling at a favorable price, it would be pointless to buy them. A good rule of thumb is that, if you can’t be certain to make a t least a 15% return on your investment or higher, stay away from it.

How do you determine if the company is selling at a good price? You need to figure out the companies’ intrinsic value, and then look at the companies’ market share. If the stock is selling at least a 25% (preferably higher) discount, it would be a good time to buy.

Of course, figuring out the company’s intrinsic value is outside the scope of this article. There are many great sources you can look to figure this out.

Just keep these simple rules in mind for locating the best stock investments, and like Warren Buffet you will make a killing on the stock market.