[Ask TBM] Which Industry is Best to Invest in Stocks?
Knowing where to put your money can be tricky, especially with many investment options available. Here’s what stock market trader and expert Marvin Germo has to say.
For first-timers who want to invest in stocks, which industries are the safest to buy into?
For newbies, I’d say look at the individual company, [and] look at the sales and net income. It has to be increasing yearly. Look at the level of debt—they should not be overly leveraged. [Also], look at the valuations. It should be a good company but reasonably priced.
I personally don’t invest based on industries or sectors because, in stocks, you have to look at the individual company and buy based on the data that you have, [as well as] the conviction that you have in that company. Especially now when things are not as optimistic from an economic perspective.
And for dividend investors like me, the dividends should be attractive enough that you are compensated for the risks that you are taking. I’d buy more crypto more though now than stocks if I was just starting out.
How about “Blue Chip” companies? Are they worth investing in?
A blue chip is a label—like calling someone pogi [handsome]. Super subjective.
I look at the things mentioned above more. I [also] use fundamental analysis for investing and technical analysis for trading.
Can you elaborate more about what fundamental analysis is about?
The ones I mentioned above—bout sales, income, [and], etc are part of [the] fundamental analysis. Same way as you value startups but [the ones that are] not pre-revenue anymore.
Basically, to look at the business and know the business. [Check] if it is something that is good, growing, and undervalued. [These are] basically the questions you would ask your friend when he offers you to invest in his business.
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Marvin Germo is a stock market trader, analyst, and investor with more than thirteen years of experience in the Philippine financial industry. He takes on many roles as an entrepreneur, National Bookstore best-selling book author, international keynote speaker, brand influencer, and personal financial consultant.
