How to Identify Good Shares

From a very young age, we have been taught to see through things and know what is good and bad. Some we learn through experience and some by instinct. Differentiating good and bad is an art that you can never master. There are nuances though that can make the task easier and when a huge risk is involved wouldn’t it be better to learn from other’s mistake than actually experiencing it.

So let’s come back to the question, How to identify good shares?

A good share can be identified only after focused and well-thought research. 

The first step is to have a good understanding of the stock market. Once you are thorough with the fundamentals, you can easily proceed with the process of investing. The highly valued shares are in NSE nifty 50 and BSE 30. Companies which exist in the market for a long time are always preferred.

Dig deep into the financials of the company and look up the financial ratios. The first ratio to be noted is the Price per earnings ratio. It helps to identify the market value of the stock. It determines the amount the market is willing to pay for the stock. If the value is high, it is an overpriced stock. If the value is low, it is an under priced stock. The financial ratios should be noted as well.

Try to comprehend the services offered by the company. Invest in a company which can provide good profits. Choose to invest in companies which have a future. Analyse if their services would be of any use in the future. Select the company which shows innovation and offers distinctive products. Standing out from the crowd is a great trait.

Follow the concept of "MOAT" favoured by Mr Warren Buffet. It favours the selection of reputed companies with a competitive edge. After analysing all these factors, choose the one which appears to be a good stock to you.

You can approach an online trading company like Goodwill for share investment. Experts will help you throughout and give you advice and guidance to proceed with the investment. For further queries, please feel free to contact Goodwill at admin@gwcindia.in or give a call at +91 - 44 - 4020 5050.

If you need more info visit: https://gwcindia.in