I never knew what shares to invest in once it comes time for me to invest. I found myself stumbling from site to site and asking people I consider knowledgeable for their recommendations. The problem with this is that, I am making my investment decisions based on other peoples investment objectives. So I decided that I needed to come up with a way that allows me to buy shares based on my own, personal objectives.
- Must be strong companies
- Have a good dividend returns
- Have low levels of risk (volatility) for a certain percentage of portfolio
- Good potential for longer term growth (buy and hold)
- Value for money
With these objectives, I put a calculator together that helps me decide on which shares to buy, based on my objectives. The above objectives are what the calculator will help me to achieve; there are others like diversification of risk and industry and others, but I’ll talk about them in another post.
Process: Once I put the calculator together, I input share prices with associated dividends and betas and sorted in to ‘Descending’ order. The shares at the top of the list offered most value, so I bought those shares. Simple right?
Aside from the calculator, please do your own research; I cannot be held responsible for your buying decisions!
Further instructions can be found in the calculator.