Want To Invest In Stocks? Go For The Market Leader
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You want to invest in the stock market. The first question. Which stock to buy? If you are a novice in the stock market, this can be quite a big decision. You get advice from friends and family. Buy a stock which is in the news. But is this a good idea? This is a time when the saying comes to mind. Buy on the rumor and sell on the news. Smart investors exit these stocks when they are in the news.
So what do smart investors do?
They buy the market leader. What is a market leader? It is a fundamentally strong Company, which has survived several ups and downs in the stock market. These Companies are market leaders in their sector. What is so special about these Companies? These Companies are conservative and not aggressive and expansionist in nature. Companies which are expansionist in nature, borrow heavily (take on debt) to grow and expand. Market leaders know how to conserve cash. In a battle (when the stock market crashes), they are the last man standing. How can you identify market leaders? These are the Companies which hold their head high in a flood, when other Companies are sinking. Stock market crashes are the time to identify these market leaders. Smart investors buy these market leaders, when stock markets crash and they are available at a low price.
