How to find good growing companies to invest as a commoner.
In the modern digital world, it is easy to find the required investment information from the internet compared to old times where only professional investors had access to the company executives and company performance metrics.
There are lots of companies that are listed in the stock market competing for your attention and money. Many of the companies are very good companies that can give a return 10 or 100 times your investment in the long run. In the same way, there are many companies that appear to be a good investment but there is a great chance to you won’t get good growth or worse, lose money. So how do you find the companies where you want to invest your hard-earned money? This is how I found good companies to invest.
If you google for ETFs with best returns, many ETFs will pop up in the results. This gives you a good starting list of companies which are filtered by the ETFs managers form the sea of publically traded companies. Then what you need to do is do a deep dive on each of the companies they hold to find companies you want to invest. See below the search results for the best performing ETFs.
In my case I used ARK Invest ETF to pick companies I want to invest. I came across ARK Invest during the CNBC interview their CEO Cathy Wood gave a few years ago. If you look at their website you can see what companies they hold and how much they have invested in each of the companies. ARK has open-sourced lots of their research as well, which is a good read to get an idea about companies and their future predictions for the different industries as a whole. If you sign up to their mailing list, they will send you their daily trading information where you can see which companies they buy and sell as well as weekly performance update on selected few companies.
Check out ark invest ETF page in the link https://ark-funds.com/arkk. Fund holding pdf lists all the companies they hold in that ETF.
A word of caution, since the one ETF can back multiple competing companies in the same sector so that they can hedge their bet by spreading their money, there is a danger you may not pick the future market leader so be careful with which company you choose to invest.
If you search in YouTube there are many YouTubers who publishes regular videos of companies that are potential investment opportunities. As a beginner, this can be overwhelming for you since there are so many YouTubers preaching investment opportunities. What you need to do is subscribe to them and listen to each of them carefully and looks at the companies they recommend. Go to the company website and check out their products and services, listen to CEO interviews more importantly try to watch reviews of the products of the company by the users. If people love the products then it is a good company to invest. If possible try out the product yourself. Some YouTubers I follow are as follows:
Tom Nash: He gives advice and balance sheet review of the companies.
Deadnsyde: He gives a review of companies whose stocks are penny stocks and has the potential to give good returns.
Dave Lee on investing: More of a philosophical approach to investing and also do nice interviews with other investors.
Chicken Genious Singapore is also a good Youtuber that gives solid advice.
Twitter is a great source for discovering new and upcoming companies to invest in. If you follow the same Youtubers in Twitter then you can find the people they follow and get their information from. Listen to as many people as possible. Try to follow people who are negative towards the company you have invested in as well to get a balanced perspective. Twitter is very good place to get real-time up-to-date information compared to youtube.
In the modern digital age, information is very much free. You have direct access to many of the company CEO, their interviews, company customers and product reviews and company SEC filing also. You can use the power of social media and the internet to crowdsource any information you want. The important thing is not to get trapped in an echo chamber of people who agrees with you. Actively look for people who don’t agree with you and bearish on companies you have picked and listen to what they have to say about the company. Listen to their point of view and see whether their concerns have any merits and whether it affects your investment thesis on the company.
As great Elon Musk once said, “Allways come from a point of view that you are wrong, and your aim should be to be being less wrong”.