What are good stocks to buy? Why, the one’s that make you money! While that is by far the simplest answer, depending on your personality, available capital, and risk tolerance, it could mean that the definition of a “good” stock varies considerably.
When assembling or managing a portfolio, an investor is always on the look-out for the best stocks to obtain their investment objectives. If you are more bear than bull your portfolio will look vastly different than a momentum investor, and different still than a die-hard buy-and-holder.
The following is a look at what are good stocks to buy for a variety of investment styles and objectives. Remember, it is your responsibility to research every security before committing any capital to ensure that it is right for you and your investment objectives.
What Are Good Stocks To Buy For The More Conservative Investor?
When betting on stock prices to rise, you are essentially betting on history. Stocks have made steady gains over the long-term despite day-to-day fluctuations. Many people find that a buy-and-hold strategy is the best path toward personal wealth.
A portfolio of stable, blue-chip companies, with steady dividends will help you achieve a conservative investment objective.
Energize Your Portfolio With Exxon (XOM)
The need for energy is not going anywhere any time soon, and Exxon is a leader in the industry. Exxon Mobil has 37 oil refineries in 20 countries, and boasts a throughput capacity over 6 million barrels a day.
Add to Exxon’s strong fundamentals a nice 2% dividend, and this stock is a definite candidate for a long term investor’s portfolio.
Want Some Fries With That? McDonald’s (MCD) Can Super-SizeYour Portfolio
McDonald’s is the number one fast-food company in the world based on revenue, and one of the most recognized brands as well. With steady sales growth, popular products and a nice dividend, this stock might make a tasty addition to your portfolio.
What Are Good Stocks To Buy For A Person Looking To Take On More Risk?
Are you looking for something more exciting, that has the potential for greater returns? You may be interested in penny stocks, a highly volatile class of securities with the potential for soaring returns. Conversely, these types of securities also have the potential for devastating losses and are not suitable for every investor.
Although many investors believe that penny stocks are shares priced at less than a dollar, penny stocks are classified by the SEC as stocks currently trading below $5 a share. By this definition, Citi ( C ) is a penny stock.
The trick is to figure out whether a company is undervalued, or cheap for a reason. This can be done by looking into the fundamentals of a company, as well as researching new developments in a sector or industry.
As penny stocks carry a large amount of risk, these investments are more suitable for a portfolio earmarked for non-essential items such as luxury cars or vacations, and not for a retirement or education portfolio.
You must still research every potential investment to assess its fit into your investment objectives, as well as its suitability for your level of risk tolerance.