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How to Choose Your 1st Stock

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From Quick Guide: Penny Stocks for Beginners

Summary: When choosing your first stock, pick a company that is well-known, reputable and highly trusted. Buy stocks in a company you are familiar with using advice from a financial consultant in this free video on investments.

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By John Pinelli
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John Pinelli is an insurance representative for Northwestern Mutual.read more

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Video Transcript

"This is John Pinelli, Financial Representative, talking to you today about how to choose your first stock. When choosing your first stock, I would typically guide you to look at something that is very stable. A well-known, reputable company, and maybe a company that you, yourself, know a good deal about. You know their industry. You know the type of work that they do, and you see some sort of sustainable future for that company. So don't just think about what stock is cheapest, or what stock might generate the highest possible return. Stick to what you know, stick to what's been around, and stick to what's been trusted. So some specific companies that you might want to consider when choosing your first stock. Maybe companies like Apple, like WalMart. I don't know about some of the automakers that we have. American automakers, at least. But there's companies out there, large companies, that are doing quite well still, like I mentioned Apple, WalMart. Some other retails, maybe JC Penny's. Looking at some big energy companies, maybe like Exxon Mobile is a big one. Some other brokerages or investment firms might be good to invest in because they do hold a large amount of securities, such as, say, Goldman Sachs. Those companies would be good to look into as well. When looking at stocks, look for some advice. Do some research. Generally try to figure out as much as you can about the stock before choosing that individual company. There's a lot of good resources that are available to the individual investor, both online and on TV as well. So look to some of those resources, and make sure that you do your due diligence before investing. This has been John Pinelli talking to you today about how to choose your first stock."

eHow Article: How to Choose Your 1st Stock

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