Picking the right stocks
We keep reviewing the important rules that help an investor to be successful on the stock markets.
Picking the right stocks seems to be an obvious one. Picking the right stocks in a market like Vietnam is of course even more difficult since less information are freely available.
But what do we mean by picking the right stocks?
There are several ways to look at this. As a general rule, there is not really something like a good stock or a bad stock. What is a right stock for one investor might be a bad one for another. Why? Simply because every investor is unique and because the performance of a stock is not always the only aspect to look at. Of course, performance and high returns is certainly what most if not all investors look for when they decide investing in the stock markets. However for some investors making ethical investments is more important than obtaining the highest possible return. Ethical investing can be defined by the fact to invest in stocks that you do not consider as being harmful to your beliefs. These beliefs vary from one individual to another. Some investors will want to avoid stocks of companies involved in activities such as gambling, alcohol or firearms. Please note that in Vietnam, there are few, if not none, listed companies that are involved in these activities. In a way, almost all investors are ethical investors. The only difference is the importance of this ethical aspect in their investment decisions.