Our first-time investor series is nearing its conclusion. Having covered the basics of how to start investing through funds and then moving on to individual stocks, we will round off the series in 2021 with an in-depth look at how to analyse a company’s accounts.
Below is a reminder to readers of the wealth of topics already covered. Links are included should you want to go back to any articles you may have missed or want to share them with friends and family who plan to take the plunge with investing. All the articles are free to read.
Getting started with investing
What to think about and how to do it. The difference between saving in a cash account and investing and the benefits of compounding.
The difference in risk between cash, bonds and shares
Understanding how you might be able to hit certain investment goals.
Opening an investment account and making your first transaction
Getting started with investing is a lot easier than you might think.
How much do charges affect your returns?
We run through some examples.
How much should you invest?
We also look at the difference between lump sum and regular investing.
Which account should I use: an ISA, SIPP or dealing account?
We explain the difference between the three main accounts.
Everything you need to know about investment funds
Funds, investment trusts and ETFs are the best places to start if you’re new to investing.
What are stocks and shares?
We discuss the case for buying equities and some of the risks involved.
Everything you need to know about bonds
We look at the world of fixed income and its pros and cons for investors.
How and why you might invest in property
The pros and cons of the asset class and the different ways of getting exposure.
Most commodities and all cryptocurrencies do not suit new investors
Why they should only be considered once you’ve built a core portfolio of funds that invest in stocks and bonds, and you have money you can afford to lose.
Everything you need to know about picking ETFs
How ETFs work, the costs, choices and popular products among retail investors.
How to choose the right investment fund for you
They are like a box of chocolates, full of different things that can leave a nice taste.
The beginner’s guide to picking investment trusts
How to compare trusts and why they have advantages over investment funds.
Understanding bonds and how to invest in them
Adding bonds to an investment portfolio increases diversification and provides more secure sources of income.
How to build your first investment portfolio
Portfolios should be thought as a team, where the whole is greater than the sum of the parts.
How to maintain a portfolio
Keeping your investments well balanced is easier than it sounds if you follow some basic principles.
What are shares and how do you make money from them?
Back to the basics of what share ownership really means.
Why do companies join the stock market and which ones can I invest in?
We examine the ‘menu’ of shares from which an investor can choose
Creating a strategy for a beginner stock investor
Getting to grips with investment strategy basics
Great places to find investment ideas and do research
Where you should look for information to support investment decisions
Does broker research add value and how can I access it?
We look at the various ways of accessing company reports and debate their value
Finding out what’s moving up and down in the markets
Where to see movements in stocks, commodity prices, currencies and bonds
How the stock market works
How the stock market brings buyers and sellers together
How do I buy a share?
The mechanics of making a stock transaction
What moves a share price
Forecast-beating results, game-changing contract wins and takeovers are just some potential catalysts
Important signals: why smart investors study director deals
Actions by people at the top can tell you how they view a company’s prospects
How companies raise cash and what it means for investors
The ways in which listed firms fund their growth
Explaining stock options and warrants and why they are important
These instruments can have an impact on ordinary shares
Six simple rules for successful investing
How to rein in your emotions and avoid classic mistakes
What the price-to-earnings ratio means
The most commonly used way to value a company’s shares
Using the PEG ratio to find growth at a reasonable price
This metric helps you to identify the trajectory of earnings
Price to book can be a good way to value banks and housebuilders
The valuation metric often used by companies seeking M&A opportunities
How to calculate enterprise value and when to use it
It is particularly important in takeover situations
Using return on capital employed to identify quality stocks
How to calculate the metric and what it means
Cash flow is a figure that can’t be fudged
Why it’s important to focus on cash
How much debt should a business have?
When comparing companies it’s important to understand how they are financed
The importance of company management when stock picking
Judging a company’s management requires a different skill-set
You should always study a company’s shareholder base
It is worth finding out about the big investors in any of your holdings
Engaging with companies via AGMs, investor events and more
There are numerous events that enable shareholders to hold firms to account
How to navigate an annual report (and why it is full of great information)
Investors should consider these publications as essential reading
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