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Five questions to ask yourself before buying a stock

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By Michael O’Connor, theislandinvestor.com

When it comes to investing, nothing is certain.

There are no perfect stocks to buy because there's no way of predicting the future with 100% accuracy.

The truth is, investing is hard, and building a portfolio of top stocks that beat the market is something that even financial professionals have trouble doing consistently.

For most people, investing in index funds is the perfect hands-off approach, providing broad exposure to the stock market at a very low fee. Even my own personal portfolio is made up of roughly 70% ETFs despite the fact I invest in the market for a living.

But I believe some stock picking is a good strategy for many hands-on people.

Taking a small portion of your overall portfolio and diligently selecting a small number of companies to invest in gives you an opportunity to learn about the investing process and fully understand the businesses you are investing in, which helps to build conviction in your positions.

From a psychological standpoint "collector's instinct" kicks in, enabling people to participate and invest more money over time.

Lastly, for Irish investors, there are tax benefits to consider. If you invest in individual stocks, you are taxed at the CGT rate of 33%, and the first €1,270 of your gains are exempt from CGT each year. When investing in index funds or ETFs, you are taxed at the exit tax rate of 41% with no annual exemption.

For those interested in picking individual stocks, here are five questions you should ask yourself before investing in any company.

Do I understand the business?

Too many people invest in businesses they don't understand because it 'sounds good'. If you have no idea how the company works, you won't have the conviction needed to hold onto the stock when an inevitable downturn comes.

Can the balance sheet withstand severe, temporary adversity?

This seems obvious, but so many people invest in companies without understanding how much money a company holds and who they owe money to. Economic cycles are guaranteed. You must ensure that the company has enough cash-on-hand to avoid becoming obsolete when activity slows.

Will the company benefit from long-term trends?

Make sure the company will remain relevant into the future. If the stock is cheap now, it may be cheap for a reason.

Is the company enjoying profitable growth?

Not growth at all costs, but a combination of sustainable growth and value. All this information can be found online at sites like stratosphere.io.

What are the risk factors?

Is the company trying something new and untested? If yes, who are its competitors and how successful are they? If other players are more established, this company may have a tough time breaking into the market.

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Concerns grow over rough sleeping beside Cathedral

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Concerns grow over rough sleeping beside Cathedral

A makeshift encampment beside St Mary’s Cathedral has renewed debate over rough sleeping in Killarney, raising questions about support for vulnerable people and the management of public spaces.

A photograph shared on a local Facebook page this week shows a tent, bedding and belongings beneath a tree near the cathedral, Bishop’s Palace and a car park used by worshippers and visitors. The location is also close to secondary schools. Comments beneath the photograph reflect concern about the encampment’s appearance and whether the response has been appropriate. The circumstances of the person staying there, including whether they have been offered accommodation or support, have not been established. Killarney councillors have raised rough sleeping repeatedly. In February 2021, the late Cllr Donal Grady told the Killarney Advertiser that some people sleeping rough had declined offers of accommodation in Killarney and Tralee. At the time, a Kerry County Council official told a Joint Policing Committee meeting: “If a person refuses accommodation then there’s nothing we can do about it. ”Those comments concerned earlier cases. They provide no evidence about the person currently pictured beside the cathedral. In January 2025, Cllr John O’Donoghue called for continued engagement with people sleeping rough, even when they were reluctant to accept help. Kerry County Council said homelessness involves complex circumstances that require cooperation between agencies.The cathedral adds a powerful historical dimension. Construction stopped during the Great Famine, when the unfinished building served as a hospital and shelter for the sick and dying. Children who died during the Famine were buried in its grounds.

A DIFFICULT SITUATION

A makeshift shelter beside this landmark raises a difficult question for a town known internationally for tourism and hospitality. Killarney also remembers the death in 2018 of a man believed to have been sleeping rough. The priority must be the individual’s welfare and dignity, alongside appropriate care for a busy public area. Has outreach taken place? Has suitable accommodation been offered? Who is responsible for managing the site, and what steps are being taken towards a lasting solution?

Have your say: info@killarneyadvertiser.ie

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Kilcummin parish celebrates milestone wedding anniversaries

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Couples across the parish of Kilcummin gathered at Our Lady of Lourdes Church for a special celebration Mass honouring milestone wedding anniversaries.

The special service, celebrated by Fr Pat O’Donnell, brought together local couples celebrating 25, 30, 35, 40, 45, 50, 55, and 60 years of marriage. Each couple received a commemorative certificate in recognition of their decades of commitment and companionship.

Following the ceremony, the parish committee hosted a reception in the parish hall, where attendees enjoyed tea, home baking, and an opportunity to catch up with neighbours and family members.

Organisers extended their gratitude to Fr O’Donnell, the church committee, photographer Anne Holland, and all who helped arrange the celebratory event.

ANNIVERSARY MASS: Pictured at the Kilcummin wedding anniversary mass are (front row, left to right) Michael and Mary Dorrigan, Michael and Mary Moynihan, Marion and Timmy O’Keeffe, and Clare and Sean Moynihan; (second row) Robert and Ann Marie Keane, Paudie and Kate Cahill, Hann and Denny Donnelly, Sheila and Charlie O’Neill, and Maureen and Francis O’Doherty; (third row) Maura and Cornelius Brosnan, Joan and Jeremiah Desmond, Breda and Timmy O’Leary, Noreen and Patie Nagle, and Barry and Breda Duggan; with (back row) Willie and Breda Fleming, Mary and Noel Cronin, and Fr Pat O’Donnell. Photo: Anne Holland.

PEARL ANNIVERSARY: Clare and Sean Moynihan celebrating their 30th wedding anniversary at Our Lady of Lourdes Church in Kilcummin. Photo: Anne Holland.

GOLDEN JUBILEE: Marion and Timmy O’Keeffe marking 50 years of marriage during the parish anniversary celebrations in Kilcummin. Photo: Anne Holland.

RUBY CELEBRATION: Timmy and Breda O’Leary celebrating 40 years of marriage in Kilcummin. Photo: Anne Holland.

SAPPHIRE MILESTONE: Joan and Jeremiah Desmond celebrating 45 years of marriage at the anniversary Mass in Kilcummin. Photo: Anne Holland.

CORAL ANNIVERSARY: Robert and Anne Marie Keane marking 35 years of marriage at Our Lady of Lourdes Church, Kilcummin. Photo: Anne Holland.

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