How to buy a good stock?

Stock investors generally believe that their profit depends on the number of shares they have, regardless of their value. Therefore, a common investor is generally preferred to buy 1,000 shares of $ 1 per share, $ 50 per share, $ 20 per share. According to experts, this view is completely wrong.

All other factors remain the same, and the return on your investment of $ 1,000 in this case will be the same regardless of the number of shares you have.

You should always go for a mature company that has a good track record of consistent performance. This advice is particularly suitable for investors who have no experience or understanding of the stock market or who do not understand basic or technical analysis. This is an investment rule of thumb.

The most popular companies have some uncertainty about their quality, which marks them from their competitors. This "thing" factor is unique to each company, it is in the eyes of the public is indelible. This unique trait can not be replicated by their opponents. For example, look at Coca-Cola, Wal-Mart, McDonald's or Apple. For example, Apple's logo has given rise to a strange confidence that no other company can be in the same industry. Such companies are independent, there is no competition to beat them. It is possible that companies such as Coca-Cola have their own trade secrets that make them invincible.