If you invest in shares, the first thing you'll have to do is choose which company’s shares you want to buy.
As a shareholder, you can also affect the business by taking part in the company’s Annual General Meetings. When picking the shares in which to invest, you should carefully consider your investment options.
Examples of potential investment criteria include strong dividend payment history, good plans and growth potential, strong management, the impact of megatrends on the business, and the company’s key figures. But there are also many other factors that may come into play when picking which shares to buy. It’s often good for an investor to take an interest in the company and the market they want to invest in.
Diversify your portfolio
Share prices are typically volatile. This is why shares often have higher expected returns than fixed-income investments. But the higher return also comes with a higher risk. The best way to reduce the overall risks is to diversify your investment.
There are many different ways you can add diversification to your portfolio, such as sector diversification, geographical diversification and time diversification. You can also lower the risks by investing in other asset classes, including fixed-income investments, funds or other investment products.