Back to Basics: Stock Investing

Looking to add equities to your portfolio? Read on for the best content on stock selection, investing education and the professionals' top picks

Emma Wall 13 February, 2018 | 9:24AM

New to investing? We're here to help. You may be fed up with the returns offered on cash savings, have inherited a lump-sum you or looking to better understand your workplace pension – whatever the reason for your financial education, you’re in the right place.

We will begin with a caveat – the length of your investment horizon determines the investments you should hold in your portfolio. Are you looking to save a specific sum in a short amount of time? Stock investing may not be for you. You should hold lower risk investments and prioritise capital preservation. Cash and bonds may be a better bet.

But if you are investing for a much longer-term goal, such as a pension, you can afford to invest in riskier assets such as stocks, also known as equities. These may fluctuate in value over time but over the long term can deliver much greater returns.

This mini-guide is designed to help you understand how a stock works, its benefits and pitfalls and where the best opportunities are in the market today. Aching for more info? Be sure to check out our archive on stock-related articles.

Back to Basics Education

What is a Stock?

In exchange for cash, the investor can buy a proportion of a company – called a stock or share

Investing in Stocks

Equity investors own a part of a listed company

UK Stock Picks

Top 20 FTSE 350 Dividend Paying Stocks

Shareholders of UK companies saw a record £94bn paid out in dividends in 2017

Top 20 FTSE 100 Dividend Paying Stocks

FTSE 100 stocks may not offer the same potential for growth, but their dividends paid by these megacaps are more secure

4 Cheap Stock Picks

The blue-chip index of the largest 100 stocks listed in the UK hit an all-time high one month ago

Global Equity Opportunities

Top Fund Managers' 5 Global Stock Picks

UK investors tend to have a home bias when it comes to stock selection, it could be time to consider a more global outlook

5 Top Stock Picks of Value Fund Managers

Banks and oil majors are currently favoured by the professional value investors. Will value investing bounce back as monetary policy tightens?

3 Great Global Stocks Going Cheap

These shares have recently seen their share price fall - earning them a five-star status from Morningstar analysts

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author Emma Wall

Emma Wall  is Senior Editor for Morningstar.co.uk