"Which stocks to buy", "which are the best stocks" or "what are your stock recommendations" - These questions are often asked to our team of editors. To answer the question of "which stocks to buy", read here how to personally choose your best stock.
Which shares to buy - How much money do you have at your free disposal?
The amount should be chosen so that (in the event of a total loss) you can maintain your usual standard of living. Never invest with other people's money.
Which shares to buy - risk profile
While safety-oriented investors tend to turn to securities such as bonds or ETFs, investors with a higher risk appetite often go for individual stocks. When buying stocks, beginners should look for growth stocks, value stocks, or a mix of the two. Spreading risk across several stocks or investments (diversification) also reduces the risk of a total loss. Which stocks to buy - A well-constructed stock portfolio should consist of both blue chip stocks and speculative stocks which - depending on your risk profile - will weight your stock portfolio in different proportions. For example, a portfolio could consist of 2/3 value stocks and one third speculative stocks.
Which shares to buy - investment horizon
Are you more of a trader who buys stocks "today" and sells stocks "tomorrow"? Or do you see yourself more as an investor who buys stocks today and then holds them for several years? Are you looking for a quick stock market gain for a short-term purchase or do you invest money for the long term?
Which shares to buy - choice of sector / industry
In general, it is easier and more interesting to invest in stocks and industries in which you are "at home". You have a home advantage, so to speak, you know possible developments of industries and companies, you know the competing companies and you generally know "what's up". This gives you an advantage over other investors: you can better assess foreseeable developments and use this knowledge for your personal investment decisions.
Which stocks to buy - The current political and economic environment
According to Warren Buffett: Be greedy when everyone is fearful. Be fearful when everyone is greedy. This applies not only, but especially, to political crises. Generally, one should move "against the tide" in investments, i.e. countercyclically - that is, buy stocks when others are selling their stocks.
Which stocks to buy - which are the best stocks our stock recommendations
In the ECONOMIC INFORMATION, we indicate in all our stock recommendations which investment risk category the stock tip is in. The investment risk categories are labelled R1 (= low risk, mostly blue chip stocks) to R4 (= high risk, large fluctuations, speculation) to indicate the risk of the investment. In addition, with each stock recommendation we give you with the GP (profit forecast) a possible profit to be expected in %.
We wish you every success with your stock market transactions.