Why do we invest? Simply because we want to earn a profit. So, a good investment is essentially the one which makes a profit. It is difficult to pin-point a good investment in a generalized way because one person’s good investment may be bad for the other. But in this article, we will give you some basic ideas to identify a good investment.

Are you ready?

Regardless of who’s creating and driving the network, banks roundly agree that blockchain needs a robust network for success.
Jane  Adams – CEO tarfo 

  1. Consistent growth:

While buying stocks of a company, you should always do some background checks. Try to look at the historical data of the company of at least 5 years. You will be able to find a trend. And if it shows that there has been consistent growth in terms of revenue, then it is highly likely that you will reap profit from the investment.

  1. Look at the price:

Just like we examine the price of any product before we buy it, we must do it in case of investments as well. You must make sure that you’re getting a good deal. The stock should be fairly priced based on the risk-return trade-off.

  1. Does it balance out your portfolio?

Your portfolio is balanced out if you include different types of investment in it. Don’t invest all your money in one industry. If you do that, you will lose all the money when that industry starts falling. That’s why try to invest in varying sizes of companies and different industries and sectors.

  1. Beware of fraudulence!

Make sure that you are investing in a credible company. The listed companies must follow the rules and regulations to trade in the market. So, they are safer than non-listed companies. Usually, they pose a threat of fraudulence.

Make informed decisions while investing. The only way to make a good investment is to avoid bad ones. So, research as much as you can before buying the stocks.

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