YOUR SIGN TO START 💰✨ (if you haven’t already!)

𝘚𝘰 𝘮𝘶𝘤𝘩 𝘵𝘦𝘤𝘩𝘯𝘪𝘤𝘢𝘭 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯, 𝘴𝘰 𝘮𝘢𝘯𝘺 𝘴𝘵𝘰𝘤𝘬𝘴 ... 𝘸𝘩𝘦𝘳𝘦 𝘥𝘰 𝘐 𝘣𝘦𝘨𝘪𝘯?

𝘐𝘧 𝘵𝘩𝘪𝘴 𝘴𝘰𝘶𝘯𝘥𝘴 𝘧𝘢𝘮𝘪𝘭𝘪𝘢𝘳, 𝘺𝘰𝘶 𝘱𝘳𝘰𝘣𝘢𝘣𝘭𝘺 𝘩𝘢𝘷𝘦 𝘩𝘢𝘥 𝘵𝘩𝘦 𝘪𝘥𝘦𝘢 𝘵𝘰 𝘚𝘛𝘈𝘙𝘛 𝘥𝘪𝘱𝘱𝘪𝘯𝘨 𝘺𝘰𝘶𝘳 𝘵𝘰𝘦𝘴 𝘪𝘯𝘵𝘰 𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨 𝘧𝘰𝘳 𝘢 𝘸𝘩𝘪𝘭𝘦 𝘣𝘶𝘵 𝘰𝘧𝘵𝘦𝘯 𝘦𝘯𝘥 𝘶𝘱 𝘣𝘭𝘢𝘯𝘬𝘪𝘯𝘨 𝘰𝘶𝘵 𝘪𝘯 𝘧𝘳𝘰𝘯𝘵 𝘰𝘧 𝘵𝘩𝘦 𝘤𝘰𝘮𝘱𝘶𝘵𝘦𝘳... 𝘩𝘢𝘩𝘢!

𝗪𝗲'𝗿𝗲 𝗵𝗲𝗿𝗲 𝘁𝗼 𝗵𝗲𝗹𝗽! 𝗛𝗮𝘃𝗶𝗻𝗴 𝗶𝗻𝘃𝗲𝘀𝘁𝗲𝗱 𝗳𝗼𝗿 𝗮 𝗴𝗼𝗼𝗱 𝟭𝟬 𝘆𝗲𝗮𝗿𝘀, 𝘁𝗵𝗲𝘀𝗲 𝗮𝗿𝗲 4️⃣ 𝗶𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀 ✨𝘆𝗼𝘂 𝗰𝗮𝗻 𝘂𝘀𝗲 𝘁𝗼 𝗰𝗼𝗺𝗽𝗮𝗿𝗲 𝘀𝗼𝗺𝗲 𝗰𝗼𝗺𝗺𝗼𝗻 𝗻𝗮𝗺𝗲 𝘀𝘁𝗼𝗰𝗸𝘀 𝗮𝗻𝗱 𝘁𝗲𝘀𝘁 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗲𝘁𝗲𝗻𝗰𝘆 👀 𝘀𝗼 𝗺𝗮𝗸𝗲 𝘀𝘂𝗿𝗲 𝘆𝗼𝘂 👉🏻 𝘀𝗮𝘃𝗲 𝘁𝗵𝗶𝘀 𝗰𝗵𝗲𝗮𝘁𝘀𝗵𝗲𝗲𝘁!

(𝚃𝚑𝚒𝚜 𝚒𝚜 𝚓𝚞𝚜𝚝 𝚏𝚘𝚛 𝚕𝚎𝚊𝚛𝚗𝚒𝚗𝚐 𝚊𝚗𝚍 𝚗𝚘𝚝 𝚊 𝚛𝚎𝚌𝚘𝚖𝚖𝚎𝚗𝚍𝚊𝚝𝚒𝚘𝚗 𝚝𝚘 𝚋𝚞𝚢 𝚘𝚛 𝚜𝚎𝚕𝚕. 𝙰𝚕𝚠𝚊𝚢𝚜 𝚍𝚘 𝚢𝚘𝚞𝚛 𝚘𝚠𝚗 𝚛𝚎𝚜𝚎𝚊𝚛𝚌𝚑 & 𝚍𝚞𝚎 𝚍𝚒𝚕𝚒𝚐𝚎𝚗𝚌𝚎 𝚊𝚜 𝚠𝚎𝚕𝚕!)

1️⃣ 𝗩𝗢𝗟𝗔𝗧𝗜𝗟𝗜𝗧𝗬 (𝗕𝗘𝗧𝗔)

💡Beta tells you how much the stock moves compared to the overall market.

🔹A beta of 1 means the stock moves with the market.

🔹If it’s above 1, expect more price swings,

🔹If it’s below 1, there is less volatility

🤔 𝙄𝙣-𝙙𝙚𝙥𝙩𝙝 𝙚𝙭𝙥𝙡𝙖𝙣𝙖𝙩𝙞𝙤𝙣:

Technology Companies often have a higher beta due to their rapid growth and sensitivity to news, whereas utility companies typically have a lower beta since they provide essential services that aren't as market-sensitive.

🔸𝙏𝙖𝙠𝙚𝙖𝙬𝙖𝙮: Are you someone who is okay with your investments fluctuating like the Battlestar Galactica or more like the teacup ride, or somewhere in between?

2️⃣ 𝗣/𝗘 𝗥𝗔𝗧𝗜𝗢

💡Shows how much investors are willing to pay for each dollar of earnings.

🔹A higher ratio might suggest that investors expect strong growth

🔹A lower ratio could indicate the stock is undervalued

🤔 𝙄𝙣-𝙙𝙚𝙥𝙩𝙝 𝙚𝙭𝙥𝙡𝙖𝙣𝙖𝙩𝙞𝙤𝙣:

Companies in the tech sector may have a higher P/E ratio, reflecting future growth expectations, while a traditional manufacturing company might have a lower P/E, suggesting a more stable earnings profile.

🔸𝙏𝙖𝙠𝙚𝙖𝙬𝙖𝙮: Let’s say your favourite branded coffee costs $7 today and suddenly it’s announced to cost $10 the next day - how many of you will still be willing to pay for it?

3️⃣ 𝗘𝗔𝗥𝗡𝗜𝗡𝗚𝗦 𝗣𝗘𝗥 𝗦𝗛𝗔𝗥𝗘

💡Gives a snapshot of the company’s profitability.

🔹A company with rising EPS over time shows it’s growing profits, which is generally a good sign.

🤔 𝙄𝙣-𝙙𝙚𝙥𝙩𝙝 𝙚𝙭𝙥𝙡𝙖𝙣𝙖𝙩𝙞𝙤𝙣:

Think of EPS like the "bottom line" of a company’s financial health. Companies that continually beat earnings expectations, like some retail giants in recent years, often see a rise in their stock price.

🔸𝙏𝙖𝙠𝙚𝙖𝙬𝙖𝙮: You would want to invest in a company that is continually making money, right? However bear in mind this is just a snapshot at this given time; you would also still want to benchmark it against similar competitors to get more insights!

4️⃣ 𝗗𝗜𝗩𝗜𝗗𝗘𝗡𝗗 𝗬𝗜𝗘𝗟𝗗

💡 How much money you get paid for holding the company’s stock.

🔹The dividend yield tells you what percentage of the stock’s price the company returns to shareholders via dividends.

🔹High dividend yields can be appealing, especially for income-focused investors

🤔 𝙄𝙣-𝙙𝙚𝙥𝙩𝙝 𝙚𝙭𝙥𝙡𝙖𝙣𝙖𝙩𝙞𝙤𝙣: Not all high dividends are a good sign, be cautious—sometimes a high yield can indicate the stock price has dropped significantly, and the company might be struggling. That being said, many large, established companies like those in consumer goods or telecoms often offer attractive dividends as part of their steady, predictable income.

🔸𝙏𝙖𝙠𝙚𝙖𝙬𝙖𝙮: Dividends and growth stocks both have their place in anyone’s portfolio - it’s more of a matter of preference and personal goals at the point of time: are you seeking passive income or capital gains? It could very well also be a mix of both. The key is to understand what you are investing into, and for what purposes.

𝗔 𝗦𝗨𝗠𝗠𝗔𝗥𝗬:

Each of these metrics gives a snapshot of different aspects of a stock and by understanding and combining them, you can better evaluate a stock’s potential. However, it is crucial also to look beyond this numbers - you should also consider the company’s industry, market conditions, and future outlook too!

If all of these are too overwhelming (or boring LOL) it doesn’t mean you can’t start, or should just YOLO and try your luck (that is gambling, not investing!); you can always look into passive investing through investment plans 😊

A trustworthy FA partner could guide you through an overview of your finances, market outlooks; and craft a suitable and diversified portfolio for you while taking into consideration your goals and commitments. They will also be able to provide you with timely market updates and advice on fund switching (free!) to literally help you maximise your money whilst you sleep (and continue living your best life) ☁️✨

𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘊𝘰𝘯𝘵𝘦𝘯𝘵 𝘱𝘶𝘵 𝘰𝘶𝘵 𝘪𝘴 𝘮𝘢𝘪𝘯𝘭𝘺 𝘧𝘢𝘤𝘵𝘶𝘢𝘭 𝘢𝘯𝘥 𝘢𝘤𝘤𝘶𝘳𝘢𝘵𝘦 𝘢𝘴 𝘢𝘵 𝘵𝘪𝘮𝘦 𝘰𝘧 𝘸𝘳𝘪𝘵𝘪𝘯𝘨, 𝘢𝘯𝘺 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘵𝘪𝘱𝘴 𝘢𝘯𝘥 𝘰𝘱𝘪𝘯𝘪𝘰𝘯𝘴 𝘢𝘳𝘦 𝘱𝘶𝘳𝘦𝘭𝘺 𝘰𝘶𝘳𝘴 𝘢𝘴 𝘪𝘯𝘥𝘪𝘷𝘪𝘥𝘶𝘢𝘭𝘴 𝘢𝘯𝘥 𝘪𝘯 𝘯𝘰 𝘳𝘦𝘭𝘢𝘵𝘪𝘰𝘯 𝘵𝘰 𝘢𝘯𝘺 𝘦𝘯𝘵𝘪𝘵𝘺 𝘰𝘳 𝘰𝘳𝘨𝘢𝘯𝘪𝘴𝘢𝘵𝘪𝘰𝘯. 𝘍𝘰𝘳 𝘮𝘰𝘳𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯, 𝘴𝘱𝘦𝘢𝘬 𝘵𝘰 𝘺𝘰𝘶𝘳 𝘵𝘳𝘶𝘴𝘵𝘦𝘥 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘤𝘰𝘯𝘴𝘶𝘭𝘵𝘢𝘯𝘵

#investingforbeginners #moneymanagement #personalfinance