Explore the strategies investors use to choose stocks and learn whether it’s better to be an active or passive investor. -- Every day, billions of stocks are traded on the New York Stock Exchange alone. But with over 43,000 companies listed on stock exchanges around the world, how do investors decide which stocks to buy? And what do individuals and institutions achieve by investing in stocks? Richard Coffin explores the tactics of different investing strategies. Lesson by Richard Coffin, directed by Franz Palomares. Support Our Non-Profit Mission ---------------------------------------------- Support us on Patreon: Check out our merch: ---------------------------------------------- Connect With Us ---------------------------------------------- Sign up for our newsletter: Follow us on Facebook: Find us on Twitter: Peep us on Instagram: ---------------------------------------------- Keep Learning ---------------------------------------------- View full lesson: Dig deeper with additional resources: ---------------------------------------------- Thank you so much to our patrons for your support! Without you this video would not be possible! Chung Wah Gnapp, Amber Alexander, Robert Patrick, Pi Guanghui, Barbara Younker, Ai Ejima, Soma Ali, Roman Pinchuk, Raheem, Hector Quintanilla, Leen Mshasha, Mariana Ortega, Danny Romard, James Bruening, Ricki Daniel Marbun, Malcolm Callis, Sabrina Gonzalez, Al the Scottish Wildcat, سلطان الخليفي, Alexander Walls, Della Palacios, Vik Nagjee, Hiroshi Uchiyama, Adi V, Andrew Bosco, Craig Sheldon, Rishi Pasham, Joanne Luce, Jason A Saslow, Mary Sawyer, Scott Gass, Ruth Fang, Mayank Kaul, Kathryn J Hammond, Max Shuai Tang, Terry Minion, Sami Khan, Rob Johnson, Abdullah Abdulaziz, Angelo Urzua-Milla, Tommy Lewis, leorene, Mahina Bachiller, Marcus Andre Nery, Bruce Vieira Lopes, Chef, Charmaine Hanson, Michael Goldberg and Lydia Pflieger....(read more)
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How do investors choose stocks? Investing in the stock market can be a daunting task. With thousands of companies listed on various stock exchanges, it can be challenging to pick the right stocks that will provide good returns. However, investors have developed several strategies to help them make informed decisions and navigate the volatile world of the stock market. One of the most popular methods investors use is fundamental analysis. This approach involves evaluating a company's financial health, including its revenue growth, earnings, debt levels, and management team. By analyzing these factors, investors can determine a company's intrinsic value and whether its stock is undervalued or overvalued. Fundamentally strong companies are more likely to generate consistent profits and offer long-term growth potential, making them attractive to investors. Another approach is technical analysis, which involves studying past market data and stock price patterns. Investors who use this method rely on charts, indicators, and trends to predict future stock movements. Technical analysts believe that historical price movements and patterns can provide insight into future price movements. While some investors find technical analysis useful, critics argue that it lacks a fundamental basis and is more akin to speculation. Investors also consider market sentiment when choosing stocks. Sentiment refers to the overall attitude and feeling of market participants towards a particular stock or the market as a whole. Positive sentiment can drive stock prices higher, while negative sentiment can lead to declines. Investors assess sentiment by analyzing news, industry trends, and other sources to determine whether there is optimism or pessimism surrounding a stock. A stock trading with positive sentiment might be a favorable investment option. Additionally, investors may analyze macroeconomic factors. These include factors such as interest rates, inflation, economic growth, and government policies. Economic conditions can have a substantial impact on companies and their profitability. For example, during periods of high economic growth, companies in industries such as technology or consumer goods might do well. Conversely, during an economic downturn, sectors such as healthcare or utilities may be more resilient. By understanding macroeconomic factors, investors can make strategic decisions about which sectors or industries to invest in. It's worth noting that every investor has their own investment style and strategy. Some investors prefer a value-oriented approach, seeking companies that are trading below their intrinsic value. Others may be more growth-oriented, looking for companies with high growth potential even if they may appear overvalued by traditional measures. Some investors may also focus on income-generating stocks, such as dividend-paying companies, to provide regular cash flow. Finally, investors should always conduct thorough research and due diligence before investing in any stock. This includes reading company reports, understanding the industry dynamics, and keeping up with news and market developments. Investing in stocks carries risks, and it's essential for investors to be well-informed and prepared. In conclusion, investors choose stocks through various strategies such as fundamental analysis, technical analysis, market sentiment analysis, and macroeconomic analysis. Each approach has its strengths and weaknesses, and investors often use a combination of strategies to make informed decisions. Regardless of the method, thorough research, analysis, and staying updated with market developments are crucial for successful stock investing. https://inflationprotection.org/the-selection-process-how-investors-choose-stocks-insights-from-richard-coffin/?feed_id=125539&_unique_id=64d2b7a24c600 #Inflation #Retirement #GoldIRA #Wealth #Investing #activeinvesting #activeinvestorsvspassiveinvestors #animation #beatingthemarket #business #companyshares #economics #education #financialliteracy #franzpalomares #indexfunds #inflation #investing #investingadvisor #investment #investors #newyorkstockexchange #passiveinvesting #pricetrends #profit #richardcoffin #sp500 #Shares #stockalgorithm #stockmarket #stockprice #stocktrading #stockvalue #Stocks #Ted #TedEducation #TEDEd #Teded #weighingmachine #TIPSBonds #activeinvesting #activeinvestorsvspassiveinvestors #animation #beatingthemarket #business #companyshares #economics #education #financialliteracy #franzpalomares #indexfunds #inflation #investing #investingadvisor #investment #investors #newyorkstockexchange #passiveinvesting #pricetrends #profit #richardcoffin #sp500 #Shares #stockalgorithm #stockmarket #stockprice #stocktrading #stockvalue #Stocks #Ted #TedEducation #TEDEd #Teded #weighingmachine
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