32: How to Pick Stocks to Invest in (Part 1: Understanding Financial Statements)

Girl on FIRE

🎙 Picking stocks to invest in is not an easy task. There’s a lot that goes into it and it carries more risk than a well diversified ETF. But when done correctly, picking individual stocks to invest in is a great way to boost your wealth. But how do you go about picking stocks? And why do you need to be able to understand a company’s financial statements? 🤔

This episode discusses topics like:

🌟 Why you should consider investing in individual stocks and when you’re better off investing in ETFs;

🌟 How companies report on their finances and what it means for you as an investor; and

🌟 What to look for in a company’s financial statements to help you make the best investment choices for your investing strategy.

Links from this episode:

Episode transcript and show notes: https://www.papermoneyco.com/gof32

Get your FREE Investing Starter Guide: https://www.papermoneyco.com/startinvesting

Investing in ETFs: https://www.papermoneyco.com/gof17

Stock picking cat: https://www.theguardian.com/money/2013/jan/13/investments-stock-picking

Time codes:

00:00 Hello and Welcome!

04:02 Why Should You Invest in Individual Stocks

12:28 Analysing Company Financial Statements to Pick Stocks

14:04 What Are Financial Statements and Where Do They Come From?

22:26 Understanding Financial Statements

25:29 Sponsor - FIRE and Investment Calculator Spreadsheet

27:24 What to Look for in Financial Statements

32:25 Next Weeks’ Episode

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The advice shared on Girl on FIRE is general in nature and does not constitute financial advice. The information shared does not consider your individual circumstances. Girl on FIRE exists purely for educational purposes and should not be relied upon to make an investment or financial decision.