Before he starts with stock investing, Michael Stadler from Osteopathy Central has a tricky question for me: Which stocks should he buy? Fortunately, this is not a difficult question. When choosing a stock, you could simply rely on the role of a dice. This is exactly what the incredibly popular index funds are doing. It doesn’t really matter which stocks you buy, as long as you are broadly diversified in the market.
Think about which companies you like, because your long-term returns depend on managers who might not even be employed by the company yet.
In principle, you should favor large and well-known companies and not focus on a particular industry. You may want to do research on how many companies in your country are health, real estate, industrial companies, etc., regardless of their stock exchange listing.
Your goal could then be to reflect this split in your portfolio. Your own conviction thus serves as a criterion in the selection of shares.