How to get into investing understanding how to get into investing

Understanding how to get into investing also means recognizing sector rotation patterns. For example, in Q1 2024, tech stocks have outperformed by 7% against the broader market, largely due to strong AI-related earnings. Keeping an eye on industry-specific ETFs can help align portfolios with growth cycles. Still Lynch said he thinks the so-called Magnificent Seven are good companies in the main. “Facebook, or Meta META, is an incredible company, Microsoft’s MSFT a great company, Google’s GOOGL GOOG a great company, Amazon’s a staggering company. I’m a little vague on Tesla TSLA, but BYD’s CN:002594 making a car in Hungary that’s a third of the price [and] a good car,” he said, adding: “I can’t get this humanoid thing.” Benjamin Graham is known as the father of value investing. He taught Warren Buffett , a modern investing icon. His book lays a framework for evaluating a business’ worth based on financial value, not short-term trading techniques. In his book, Graham defined many important investing concepts such as “margin of safety,” which is an important input in the Morningstar Rating for stocks . Pay attention to global market correlations. For example, China’s manufacturing PMI at 50.6 recently surprised to the upside, supporting U.S. multinational earnings — an important consideration when learning how to get into investing with a global mindset.