Holly Black: This week's reader asks, how do I pick individual stocks to invest in? Now honestly, there's no right answer.
Morningstar analysts look at a whole range of things when they're rating stocks, we like to see an economic moat, which means a company has an edge over the competition, we look at its uncertainty rating. And of course, we look at the company's current share price, versus what we think its fair value is.
But I think the real golden rule when choosing stocks is only to invest in things you understand, things you want to buy and hold for the long term. And never buy or sell a stock because you've got FOMO or because you're being pressured to by someone else. And once you've got some stocks you want to buy, start by putting a small amount into them. Invest on a regular basis drip feed your money in and sit back, be patient and ignore any market noise.
