The secret to choosing good stocks is that there really is no secret to it. The winning techniques are tried and true. They don't work all the time, but they work often enough that the methods employed by successful stock investors tend to be more alike than different.
Information is the key. Having the right information about a company and knowing how to interpret it are more important than any of the other factors you might hear credited for the success of the latest market genius.
Information is even more important than timing. When you find a company that looks promising, you don't have to buy the stock today or tomorrow or even this month. Good stocks tend to stay good, so you can take the time to investigate before you invest. You get much of the information you need to size up a company's prospects on the Web, and a lot of it is free.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Kiplinger way to succeed in the stock market is to invest for both growth and "value." That means concentrating the bulk of your portfolio in stocks that have good fundamentals -- as measured by earnings, price-earnings ratios, book values and other key indicators that will be explained later -- and holding those stocks for the long term. For those in search of income, not growth, it means applying the same tests so you don't make any false and risky assumptions about the stocks you buy.
The Kiplinger way is not based on buying a stock one day and selling it the next. It does not depend on your ability to predict the direction of the economy or even the direction of the stock market. It does depend on your willingness to apply the right measures before you place your order.
You should aim for an annual return of 10% to 12% per year on your investments. That's an achievable range if you plan your approach thoughtfully and stick to your plan.
By knowing how to use the basic tools that stock analysts use to separate the good from the bad, you should be able to find the stocks most likely to meet your goals and strategy. Take a look at the yardsticks professional money managers use to measure security values. You can use them, too.
So how do the pros sort out the good stocks from the bad? By comparing the following characteristics...
-
The Top 10 Side Gigs For Retirees In 2026Money is freedom in retirement; here’s how to earn more of it with a profitable side gig
-
3 Retirement Changes to Watch in 2026: Tax EditionRetirement Taxes Between the Social Security "senior bonus" phaseout and changes to Roth tax rules, your 2026 retirement plan may need an update. Here's what to know.
-
The 'Yes, And...' Rule for RetirementRetirement rarely follows the script. That’s why the best retirees learn to improvise.
-
Trump Reshapes Foreign PolicyThe Kiplinger Letter The President starts the new year by putting allies and adversaries on notice.
-
Congress Set for Busy WinterThe Kiplinger Letter The Letter editors review the bills Congress will decide on this year. The government funding bill is paramount, but other issues vie for lawmakers’ attention.
-
The Kiplinger Letter's 10 Forecasts for 2026The Kiplinger Letter Here are some of the biggest events and trends in economics, politics and tech that will shape the new year.
-
Special Report: The Future of American PoliticsThe Kiplinger Letter The Political Trends and Challenges that Will Define the Next Decade
-
What to Expect from the Global Economy in 2026The Kiplinger Letter Economic growth across the globe will be highly uneven, with some major economies accelerating while others hit the brakes.
-
Shoppers Hit the Brakes on EV Purchases After Tax Credits ExpireThe Letter Electric cars are here to stay, but they'll have to compete harder to get shoppers interested without the federal tax credit.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
