Hi all,
I’m looking for some advice and guidance as I’m fairly new to investing outside of ETFs. Up until now, I’ve mainly stuck with ETFs because they feel simpler, more diversified, and easier to understand as a beginner. Lately though, I’ve been thinking about branching out into individual companies, but I’m finding the process a bit overwhelming.
There seems to be a huge sea of options when it comes to stocks, across different industries, markets, and levels of risk. With so many companies to choose from, I’m curious how you all narrow things down and decide which ones are worth researching further. Do you start by looking at industries you’re already familiar with, or do you screen based on financial metrics like revenue growth, profitability, or valuation ratios?
I’m also interested in learning what your research process looks like before you actually invest. For example, how much weight do you put on a company’s financial statements versus things like management quality, competitive advantages, or long-term growth potential? Are there specific tools, websites, or resources you rely on to help with analysis?
Finally, I’d love to know how you manage risk when investing in individual stocks, especially compared to ETFs. Any tips, common mistakes to avoid, or lessons learned from your own experiences would be greatly appreciated.
Thanks in advance for any insights you’re willing to share.