A large part of my building wealth strategy is learning how to invest in the stock market successfully. My first investment as part of the Saving to be Rich project was to buy Caterpillar stock (CAT) – so far they’ve gone down 5% since I purchased it. Not really the direction I was hoping for.
Today, I made my second purchase and chose Cognizant Technologies.
I am part of an investment club and Cognizant (CTSH) has been one of our best performing stocks for the past 3 years. When we evaluated it at our monthly meeting last week, it still looked really strong and has the potential to triple in value – so I decided to add it to my portfolio.
There are lots of things to look at when deciding which stocks to buy, including:
- Price per Earnings Ratio
- Debt to Capitol
- Quarterly Reports
- Analysts recommendations
- Their competition
- What size company are they? Small, Mid or Large Cap?
- And much more.
I will try to address what you should look for in upcoming posts.
What about you? Any good stock tips worth sharing?