Investing in stocks is not that complex and hard as it may seem to be. You just have to look around you to find products which are performing well and which has got huge demand from consumers.
For example, you visit a grocery store near you and you find out that there is a group of people buying the same particular product. What can you make out of it? It means that the brand has got a good customer retention rate and there is a huge demand for that product which would tell us that the company is doing well and will be performing in the future also. Now, you just have to go through the annual report of the company to know it’s financial performance in the past and their predicted future revenue and profit.
Congratulations, you have just found a stock which would give you good returns in the future. You just have to change the way you look at different products to identify good stocks.
Let’s take a look at some of the real examples below:
Due to the coronavirus pandemic, everyone is in their homes and some are working from homes while some are chilling inside their homes. When you don’t have any contact with the outside world, what connects us with them?
That is the internet, so the demand of internet providers have risen which means that the demand of telecommunication companies like Reliance Jio, Airtel have risen. You can invest in these stocks as the demand for them will only be rising.