Which stocks are good to invest in? It depends who you ask

Ask five people which stocks are good to invest in and you may get five very different answers.

Your colleague swears by technology stocks. Your father thinks large, established companies are the way forward. Someone on TikTok has just discovered a company that, according to him, will change the world.

And your friend, who bought his first share three weeks ago, has suddenly developed impressive confidence about financial markets.

Everyone has their favourites.

But what actually makes a stock good? And how do you decide which stocks merit a closer look?

What characterises a good stock?

A good company is not automatically a good investment at any price.

Imagine a company with popular products, growing revenue and a strong market position. It sounds interesting.

But what if the share price already reflects expectations of many years of strong growth?

Even a well-run company may then prove a disappointing investment if performance does not live up to expectations.

Several factors can therefore be relevant when researching a stock:

• The company's finances: is it profitable, and how are revenue, earnings and debt developing?

• The share price: what are you paying for its current and expected earnings?

• Growth opportunities: can the company develop and strengthen its market position?

• Risk: how dependent is it on individual products, customers or markets?

• Dividends: does it distribute some profits to shareholders or reinvest the money?

None of these factors alone can tell you how the share price will develop.

Together, however, they can help you understand what you are considering investing in.

The same stock can interest one investor and leave another cold

Imagine two investors: Emma and Oliver.

Emma is interested in technology. She invests with a long time horizon and accepts that share prices may fluctuate substantially along the way.

Oliver prefers companies with a longer track record, relatively stable business models and the potential for dividends.

Both research the same technology company.

Emma finds its growth opportunities interesting. Oliver notices that it pays no dividend and that earnings fluctuate considerably.

They are looking at exactly the same stock but assessing it against different criteria.

Both may have good reasons for their assessments.

It makes sense to understand your priorities before comparing stocks.

What if your views also play a part?

Imagine wanting to invest in companies working on new technology.

You are interested in artificial intelligence, automation and future energy solutions.

You also have views on which sectors you want exposure to.

Perhaps you want to avoid the arms industry. Perhaps you want to limit exposure to particular countries. Or perhaps you have no specific exclusions but prioritise broad geographic diversification.

These are different ways of approaching investing.

Interesting dilemmas may arise.

A technology company might develop products for both civilian and military purposes. A green energy company might operate in countries to which you would rather limit exposure.

And a fund with a sustainable name may hold companies that do not align with your personal criteria.

Examine what an investment actually contains and how the company earns its money.

Investing in line with your views starts with understanding what those views are.

Five questions to help you choose your stock research criteria

If you are looking for stocks to research, you can begin by asking yourself five questions:

1. How long will I invest for? Will I need the money in a few years, or do I have a longer time horizon?

2. How much risk can I accept? How would a large price fall affect my finances and willingness to continue?

3. Which sectors interest me? Are there areas I want to research further?

4. How important are dividends? Do I prefer companies that distribute some profits or those that reinvest the money?

5. What would I rather avoid? Are there countries, sectors or types of company that do not align with my priorities?

You do not need a clear answer to every question from the start.

Choosing “no preference” is also entirely valid where a characteristic does not matter particularly to you.

The aim is to identify the criteria that actually influence your choices.

The idea behind getting started with Wizer Invest

We are developing Wizer Invest around a simple idea: you should decide which characteristics matter when researching investments.

The platform is still under development. The aim is to let you work with your own criteria and compare them with documented characteristics of equities, ETFs and funds.

1. Choose your investment criteria
   
   Start by considering the characteristics you want to examine.
   
   These might include risk, geography, sectors, dividends and diversification.
   
   You decide which criteria are active and where you have no particular preference.

2. Examine the investments' characteristics
   
   Wizer Invest is intended to compare your criteria with available information about investments.
   
   For example, you might hypothetically choose five criteria and find that an investment meets four.
   
   You would then be able to see which criteria are met and which are not.
   
   If there is insufficient information to assess a criterion, it should appear as unknown rather than be counted as a match.

3. Use the results to guide further research
   
   A high match means the investment meets more of your chosen criteria.
   
   It does not tell you whether the stock is attractively priced, will rise in value or fits your financial circumstances.
   
   You still need to research the company, its finances, valuation and risks before making an investment decision.
   
   Wizer Invest is intended as decision support to make investment characteristics easier to compare.

So which stocks are good to invest in?

The company's finances, share price, your financial goals and your risk tolerance all play a part.

And, of course, so do your own views and interests.

Your money. Your criteria. Your choice.

This content is for general information and education and does not constitute personal investment advice. Investing involves risk, and you can lose money.

Sources

Investor.gov — Stocks
https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks

Investor.gov — Asset Allocation and Diversification
https://www.investor.gov/introduction-investing/getting-started/asset-allocation

European Securities and Markets Authority — Costs and Performance of EU Retail Investment Products
https://www.esma.europa.eu/document/market-report-costs-and-performance-eu-retail-investment-products-2025