the new investor
I
t is often quite daunting trying to choose a company to
invest in when there are so many out there, especially
when you are just starting out.
Shopping around for a stock is much like shopping
around for anything else, like clothes, or a new car. You
need to shop around for a bit until you find the right one. It
is not a good idea to be that compulsive shopper who buys
the first thing that you see. Just like shopping for anything
else, it is always important to consider your options.
With this in mind, we will go into a few easy things you
can do to start getting into the stock market, and choosing
your first company.
By Mathew Piper
INVEST IN WHAT
YOU KNOW
Considering the amount
of time it would take to
browse through every
company on the JSE, it
is always easier to invest
in something you know.
If you are a fashion guru,
why not try out some
retail companies? If you
are a UCT student and
love drinking beer, why
not try a beer company
like SAB Miller? This
is a good place to
start – with what you
know! Once you pick a
company, you can then
do the relevant analysis.
Warren Buffett
definitely invests
in what he knows
– Cherry Coke
and McDonalds
Burgers – two
of his favourite
foods, and
companies.
ANALYSIS
www
THE INTERNET
IS YOUR FRIEND
There are so many
websites out there that
make the investor’s life
easy. A good example
of this would be
www.bloomberg.com.
Under their personal
finance and watchlist
tracker, you will find
a lot of useful data in
the form of a stock
quote. There are other
websites such as
www.bullsnbears.co.za,
which do all the analysis
for you in a neat daily
newsletter.
f
latest newS
SOCIAL MEDIA
With the amount of time
you spend on Facebook
or Twitter, it can be
more convenient to
follow sources such as
@JSEwatch or “like” the
BullsnBears Facebook
page to get constant
information on the
market.
Twitter was
valued at over
$14 billion after
going public
in 2013.
THE NEWS
The world of news can
always spark an idea
about what to invest
in. Keeping a keen
eye on the market by
watching shows such
as CNBC’s Hot Stoxx
could be a good place
to start. There are so
many investors out there
giving their opinion, that
it may just spark a trade
idea for you.
Always make sure you
do proper research
into a company before
you decide to buy their
stock. There are many
techniques you can
use to find an attractive
company. The only
way to learn these
techniques is by reading
as many books as you
can about investing,
or to start talking to
people who have more
experience than you do.
You can visit
www.studentinvestor.co.za
to browse through
some very easy-to-read
articles to start you
on your way. The only
way to begin is to take
the plunge, and start
learning now!
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