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How To Choose A Stock?

i just started buying Us stocks on Kuvera. i want to invest for long term, so any suggestion on how to choose stock. For now, i mostly pick tech companies like Shopify, Spotify etc, as i believe in those companies as a tech guy.
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Comments

  • I use OXO.
  • Motley Fool tips?  :D
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Tech based ETF. 
  • Unless you have close connections with the US, I am curious as to why you are investing in US stocks. The logical (?) starting point for a UK investor would be FTSE 100 companies. It's possible, with a few clicks, to compare PE ratios, debt/equity ratios, broker recommendations, etc.. It's important though for you to make your own decisions about which company to invest your own money in. There is nothing wrong with reading tips but you should not invest in any small, thinly traded company that you had not even heard about before reading the tip and you should not regard any particular tipster or any particular sector as an infallible route to easy profits. If the decision to invest in US stocks was made by the platform provider and not you then you should ditch the platform or, at the very least, research and be wary about pump and dump and other scams.
    If you don't have a lot of experience investing, you should start with small amounts that you can afford to lose. You can move to larger amounts if you feel so inclined as you learn.
  • maxsteam said:
    Unless you have close connections with the US, I am curious as to why you are investing in US stocks. The logical (?) starting point for a UK investor would be FTSE 100 companies. It's possible, with a few clicks, to compare PE ratios, debt/equity ratios, broker recommendations, etc.. It's important though for you to make your own decisions about which company to invest your own money in. There is nothing wrong with reading tips but you should not invest in any small, thinly traded company that you had not even heard about before reading the tip and you should not regard any particular tipster or any particular sector as an infallible route to easy profits. If the decision to invest in US stocks was made by the platform provider and not you then you should ditch the platform or, at the very least, research and be wary about pump and dump and other scams.
    If you don't have a lot of experience investing, you should start with small amounts that you can afford to lose. You can move to larger amounts if you feel so inclined as you learn.
    FTSE 100 companies would be the very last place I would look for shares, bar a handful of exceptions, and I'm certainty not averse to investing in the UK. I own several in FTSE250 and AIM. 
    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • Steve182 said:
    FTSE 100 companies would be the very last place I would look for shares, bar a handful of exceptions
    That's a very bold statement. Is there a reason?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    maxsteam said:
    Steve182 said:
    FTSE 100 companies would be the very last place I would look for shares, bar a handful of exceptions
    That's a very bold statement. Is there a reason?
    Better value elsewhere.
  • alice131 said:
    as i believe in those companies as a tech guy.
    Good luck.
  • Steve182
    Steve182 Posts: 623 Forumite
    Fourth Anniversary 500 Posts Photogenic Name Dropper
    edited 15 February 2021 at 12:07AM
    alice131 said:
    i just started buying Us stocks on Kuvera. i want to invest for long term, so any suggestion on how to choose stock. For now, i mostly pick tech companies like Shopify, Spotify etc, as i believe in those companies as a tech guy.
    I use Stockopedia, but it's acknowledged that their system is much more effective in picking winners from the UK and results are not as good with US stocks. 

    If you want exposure to US tech you should consider Baillie Gifford US growth trust, or for a more global approach, Scottish Mortgage.

    I also have a large exposure to US and Scottish Mortgage is a core investment for me. They offer unique exposure to unlisted companies as well as the better known stocks like Tesla, Amzn etc and fees are only around 0.3%.

    Search for some Scottish mortgage webinars on google/youtube. After watching them you may quickly conclude that it's best to let those guys pick the growth stocks you want to invest in.

    Be aware that US valuations are quite elevated at present, so it's definitely not without risk. 


    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • jimjames
    jimjames Posts: 18,799 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Remember the saying: if it looks too good to be true it almost certainly is.
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