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How To Choose A Stock?

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    maxsteam said:
    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.
    You mean developing countries? 
    No. There's a universe of stocks outside the FTSE 100 listed on the LSE. Before one even needs to search internationally. 
  • maxsteam said:
    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.
    You mean developing countries? 
    No. There's a universe of stocks outside the FTSE 100 listed on the LSE. Before one even needs to search internationally. 
    Indeed, there are actually 1100 companies listed on LSE main market and another 850 on 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
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Steve182 said:
    maxsteam said:
    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.
    You mean developing countries? 
    No. There's a universe of stocks outside the FTSE 100 listed on the LSE. Before one even needs to search internationally. 
    Indeed, there are actually 1100 companies listed on LSE main market and another 850 on AIM. 
    Though there is growing concern about the number of companies in private ownership. Having no need to use the markets to raise capital, and likewise avoid the regulations and expense that accompanies a public listing. The US is suffering the same issue. 
  • Steve182 said:
    maxsteam said:
    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.
    You mean developing countries? 
    No. There's a universe of stocks outside the FTSE 100 listed on the LSE. Before one even needs to search internationally. 
    Indeed, there are actually 1100 companies listed on LSE main market and another 850 on AIM. 
    Though there is growing concern about the number of companies in private ownership. Having no need to use the markets to raise capital, and likewise avoid the regulations and expense that accompanies a public listing. The US is suffering the same issue. 
    Interesting you should say that. The latest Wikipedia entry, presumably now out of date, suggests total 2600 companies on main market/aim combined, whereas LSE website states 1950 combined. That's a large drop, even accounting for recent failures due to economic downturn.
    “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
  • If the current price is always the right price, noted above, and if the price reflects the future returns on the investment, how could any one stock be a better choice than any other stock unless by luck or knowing something that almost no one else in the market knows?  I think it's luck...
    That was sometime a paradox but time gives it proof. If we start with the certainty that prices will diverge, it becomes a matter of looking in a promising area before investing. I think that is what Paul Getty meant by the quote below or, as the OP nicely puts it
    "I am not the expert, i just focus on the vision of the  company who are doing good in my sector of expertise." 
    I certainly don't recommend poring over balance sheets of multi billion dollar companies, that's what the market is for.

    It's a long game but, if you have to sell, sell the geese rather than the swans. If you don't have to sell, don't sell. The OP is young enough to realise some really good gains with long term holdings. Disney shares were 7cents in 1964.
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