facebookHow to pick good ETFs, REITs and Stocks? Thanks. - Seedly

Anonymous

20 Apr 2019

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General Investing

How to pick good ETFs, REITs and Stocks? Thanks.

Discussion (2)

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Billy

20 Apr 2019

Development & Acquisitions Manager at Real Estate Private Equity

I think first of all, you must ask yourself how would you define the term 'good'?

It's very similar to your life stage.

When you're youth, you have the time and energy but no money.

When you're adult, you have no time but you have energy and money.

When you're old, you have the time and money but no energy.

Therefore, putting it into persepective:

REITS

Is a 'good' REIT, one that has less than 30% gearing?

Is a 'good' REIT, one that gives you more than 6% annual yield?

Is a 'good' REIT one that you would expect a 10% capital appreciation?

The best is having a REIT that encompasses all of them, but we all know we can't have the best of both worlds.

Not sure if you've seen this triangle that illustrates the struggle of a student.

Similarly, investors have different motivations to investing a particular counter, hence you really have to identify your own definition of 'good', otherwise the answers you see here are gonna vary a whole lot.

Read, pay money or experience.

Read - There are lots of sites where folks share their analysis for discussion. Depending on how you assess their thought process and doing your own due diligence, that could be one way to pick stocks.

Pay money - There are also services that you can pay for that do stock recommendations like The Motley Fool. Based on their track record and expertise, that is another way to identify potential stocks.

Experience - Rolling up your sleeves and digging into the financial reports/doing TA/macro-micro etc to identify stocks and then actually investing in them. If you are new to investing, you could start with trial accounts/fantasy investing/stock simulators to get the hang of it first. Over time, you hone your strategy and methodology to identify stocks.

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