A lot of people suffer highly when they plan to invest in the stock market. The most difficult part is making the appropriate selection of stocks. This is because the risk of loss will be less with the right selection.
Therefore, here we have suggested very simple method i.e. Consumption Approach: by adopting the consumption approach, you can easily select the stocks for investment purpose.
What is the Consumption Approach:
Buy the Stocks, for the long term, whose products or services you use or notice individuals using on a day-to-day basis. There are many such stocks that you can find in your day to day life. We have given examples of a few stocks in the image. These Products are such without which you cannot imagine your daily schedule.
Benefit of Consumption Approach:
1. Easy to use
Even if you are unaware of much technical analysis or even fundamental analysis then also there is no need to worry. Because you can still select good stocks based on this simple and effective consumption approach funda. You don’t need to be good at analysis or calculations for selecting stocks if you apply a consumption Approach.
2. High Success Probability
The Probability to erode wealth is very low in these stocks. This is one of the best approaches to choosing the best-performing stocks of all time to build a long term portfolio of such stocks.
Consumption approach will easily diversify your portfolio, diversification of your portfolio will reduce your risk. For Diversification you need to invest slowly. You can also invest an equal amount monthly, this will safeguard you from major downfall as well.
However, this approach needs further filtrations. As an investor, you should make your investment decision on key parameters like company’s business strength, financial strength, performance, management quality and overall market opportunity.
The basic goal of an Consumption approach funda is to select the best stocks but if you are also looking for the right price to enter to get an attractive risk-adjusted return as well as reduce portfolio volatility, and increase exposure to certain sectors that may otherwise be lacking and if you are looking forward to avoiding all this hectic work then Multibaggers.co.in is the best place for you as you can hand over the job to our experts. At Multibaggers.co.in we provide the best stocks to buy for a long-term investment. In addition, we also filter the stocks that are selected on a consumption basis. Like consumption, there are other approaches such as the investment approach, qualitative approaches, and many more. Under the Value Pick Stocks category we provide such stocks for long term investment.