Investing in stocks is certainly not an easy task. In addition to being exposed to various risks, the investor becomes the owner of part of a company, acquiring some responsibilities. But, after all, do you know which are the best companies to invest in ?
There are several factors that can indicate the “health” of a company, including the price of its shares within the B3 (Stock Exchange). Stocks are small representative portions of a company – the higher its value, the more valued it is.
Trading on the stock market arouses the interest of many investors looking for high returns. Shares are traded by B3, which guarantees the regulation and security of operations. Check below tips on how to choose the best companies to invest in.
Know your investor profile
For you to know which are the best companies to invest in, you need to understand your investor profile, which is divided into three categories: conservative, moderate and bold (or aggressive).
The moderate and bold profiles are types of investors who are more adept at the so-called riskiest applications on the market, that is, stocks. The stock market offers investors one of the best potential returns on the market.
The conservative investor is the one who prefers to invest in safer assets, which suffer less variations and risks. This type of investor is attracted to assets such as fixed income, whose earnings estimate is more predictable.
The moderate investor is the one who has a median investor profile, being neither too conservative nor too aggressive. This type of investor usually allocates part of his investment portfolio in traditional assets, such as the Direct Treasury, for example.
With a good part of their capital protected by safer assets, those who belong to this investor profile turn to medium and high risk assets, with the main objective of better returns in less time.
In the case of the aggressive investor , his main intention is to obtain the best returns, even if this means taking greater risks. The investment portfolio of those with this investor profile tends to be composed mostly of high and medium risk assets.
A small part of the portfolio is made up of fixed income assets, as if it were a kind of security reserve, in case there are large losses in the capital or variable income market.
In addition to defining the investor profile, another aspect that should be taken into account when choosing good companies to invest in is the time that the investor has been working in the financial market, as well as their financial education.
Find out the differences between MEI, ME, EPP and choose which category to invest in
Another key point in choosing the best company to invest in is defining the type of company, which are divided by their revenue. They are usually separated by their size into three categories. Look:
- MEI (Individual Microentrepreneur): annual revenue of up to R$ 81 thousand;
- ME (Microentrepreneur): annual gross revenue of up to 360 thousand,
- EPP (Small Company): annual gross revenue between R$360,000 and R$4.8 million.
In addition to this traditional division, there are other types of companies that, in addition to billing, take into account their market value. Check out what they are:
Blue Chips are generally shares of large companies, with a well-established name and business. They are considered low investment companies in theory by experts .
Blue Chips are considered large companies, since until recently Petrobras was one of the largest in the category until it went through the scandal that affected the company.
Small Caps (SMLL)
It is the index used for the smallest companies, but which have a high potential for growth. Usually these companies have shares with lower values when compared to other companies. Its potentials are reflected in the continued revenue growth over the years .
High Grow or, translated into Portuguese, “high growth”, is the English term used to define companies with great growth potential in the market. Generally, they are small, but in recent years they have had high turnover rates, that is, growth premise.
Present in areas of innovation, such as technology startups, High Grow have been on the list of investors among the best companies to invest in the stock market , due to their ability to sustain accelerated growth.
Dividend paying companies
In addition to the types mentioned above, there are companies that pay dividends, that is, those that pay their profits to their shareholders. In general, they are already consolidated in their area of activity and have no more sectors to invest in.
This is an investment considered less risky, since it has the security of a minimum percentage. According to B3, companies have an obligation to pay at least 25% of their net income to their shareholders.
The best sectors to invest in
Finally, seek to know the various types of sectors available in the market. It is important that you know and understand how the sector interacts with the current economic situation in the country.
The Stock Exchange divides companies into several sectors, see what they are:
- Industrial goods;
- Non-cyclical consumption;
- Cyclical consumption;
- Basic materials;
- Oil, Gas and Biofuels;
- Public utility,
It is worth noting that it is essential to research about it in order to be able to invest in something that generates a good financial return. Monitoring how the sector is performing against the market can guarantee good results in the long term. Factors such as good market acceptance, adaptability to consumer movements and adaptation to technological advances certainly increase the chances of a business to prosper.