Which Shares To Buy?

So which shares should you buy in the current market, what sector should you be looking at and what kind of company will stand up even if the world economy continued to suffer?

The answer to all of these questions goes beyond the scope of this article, so lets focus on the most important aspect, what shares should an investor buy which will perfom well over the medium to long term.

Based on the share market performance over the past 10 years, its without question that sticking to stocks and shares with a solid household brand, good overall reputation and most importantly a ‘high dividend yield’ will perform or even outperform the broader stock market performance year after year. Buying these shares on a retracement or “market correction” like we have just experienced allows investors to buy the shares cheaper than normal and can increase the overall long term return.

We cant give specific advice here, but lets talk in general terms using the exampple ” Woolworths Shares ” lets see if we can tick a few basic boxes to dtermine if this is a sound, well branded company which offers a dividend to investors.

Lets see if we can tick the boxes.

Woolworths -
Number 1 Super Market and Retail Food Sales in Australia
Strong Avertisement and Branding,  A common Household Name
Quality Product and Afforadble Every Day Prices
Demand From Buyers For Food and Goods (obvious market).
Strong Cash Flow, Strong Dividend to Investors and Solid Earnings Per Share.

It certainly looks like Woolworths  meets most ticks , and of course, similar companies in the retail industry offering good in high demand will generally match this criteria and perform the market and the economy.

You see, common sense here applies, that if you can tick the basic boxes for share picking , then you can be assured that you at least have a fighting chance to perform or outperform other shares and the broader share market.

Hope this helps for newbies.