Personal finance gurus all teach you to save a part of what you earn and invest it, but not a lot of them will teach you the specifics of fundamental analysis (analyzing the specifics of companies) and how you should choose specific stock investments aside from “buy shares of big companies.”
Warren Buffett said that “Risk comes from not knowing what you’re doing.” Before you invest in a stock, you need to learn what the company’s valuation numbers mean. You need to know what the numbers say about the company’s performance instead of gambling solely on what the stock price graphs say.
*Note: This is a basic guide and I’ll include links to the Investopedia articles if you want to know more about each one. The true importance of this guide is in its Tagalog translation as it’s intended to serve as a primer for Filipinos who want to learn a few things about choosing the best stocks.