You probably already know that investing in the stock market for the long-term will net you bigger profits in the long run.
It's true -- patience is your friend when it comes to the stock market.
But how do you know which stocks are most likely to grow your money over a period of several years? When investing in the stock market, it's always a good idea to get good information where you can.
You can hire an adviser to build your portfolio for you, for instance.
But to give yourself a bit of control over your own investments, keep these tips in mind when looking over stock options.
#1 - Look for stocks at "sale" prices.
More specifically, take a look at a company's historical price-to-earnings (P/E) range.
If it's currently selling at less than half its P/E range, then it's a good bet.
Why? Because you benefit both from rising prices and a rising P/E range over the next several years, making such stocks very attractive for long-termers.
#2 - Look for companies with special marketing, technological, or pricing advantages.
This is especially important when investing in companies that do business internationally.
If, for instance, they operate in cities and countries that don't have as much market competition, they're very likely to do very well -- and so will your well-placed investments.
#3 - Check the company's dividend history.
The best investors play it safe by choosing companies that have at least 15 years of positive dividend growth.
Constant growth means the company has a management team that definitely knows how to execute its business plan.
There are many other ways to find good stock options to put your money in, but these three tips should give you a pretty good start on your long-term road to riches.
It's true -- patience is your friend when it comes to the stock market.
But how do you know which stocks are most likely to grow your money over a period of several years? When investing in the stock market, it's always a good idea to get good information where you can.
You can hire an adviser to build your portfolio for you, for instance.
But to give yourself a bit of control over your own investments, keep these tips in mind when looking over stock options.
#1 - Look for stocks at "sale" prices.
More specifically, take a look at a company's historical price-to-earnings (P/E) range.
If it's currently selling at less than half its P/E range, then it's a good bet.
Why? Because you benefit both from rising prices and a rising P/E range over the next several years, making such stocks very attractive for long-termers.
#2 - Look for companies with special marketing, technological, or pricing advantages.
This is especially important when investing in companies that do business internationally.
If, for instance, they operate in cities and countries that don't have as much market competition, they're very likely to do very well -- and so will your well-placed investments.
#3 - Check the company's dividend history.
The best investors play it safe by choosing companies that have at least 15 years of positive dividend growth.
Constant growth means the company has a management team that definitely knows how to execute its business plan.
There are many other ways to find good stock options to put your money in, but these three tips should give you a pretty good start on your long-term road to riches.