How to select which stock to buy?

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If you could and want to, what is the one stock you will buy?

These are not stock recommendations but these are some of the over 900 stocks on Bursa Malaysia to pick from.

There are essentially many ways to select which stock to invest in. Though some rely on tips from friends and brokers to buy stocks, one should do one’s own research and know the fundamentals of the companies. “Look for the company’s price-to-earnings ratios – the current share price relative to its per share earnings. A company’s beta will tell how much risk is involved with a stock versus the market, ’’ one report said.Another report added that one should look for trends in earnings growth, debt-to-equity ratio versus industry norms, price-to-earnings ratio, dividend policy, company’s strength versus its peers and how effective the executive leadership is.

To bet on the future, know what companies will do well when normalcy returns after the pandemic. There is always an impetus for the share price to soar if capital gains are your objective.

 

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