News
Five questions to ask yourself before buying a stock
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.
Donal Cremin retires from Scoil Phobail Sliabh Luachra
Staff at Scoil Phobail Sliabh Luachra in Rathmore gathered in late May to mark the retirement of long-serving teacher and former ASTI President Donal Cremin at a function held in the Brehon Hotel.
Donal had been a member of the teaching staff since the school opened in 1998, working initially as a metalwork and technical graphics teacher before transitioning into his role as a school guidance counsellor. His career in education spans several decades, including 15 years at Scoil Mhuire gan Smál in Blarney. Prior to entering teaching, he worked as a senior craftsman at the Sugar Factory in Mallow.
Throughout his career, Donal was a prominent advocate for workers’ rights within the Association of Secondary Teachers, Ireland (ASTI). He held multiple positions within the union, including school steward, Board of Management representative, and regional representative. In 2023, he became the first Kerry person to be elected as President of the ASTI.
Outside of his professional life, Donal has been a long-standing volunteer within the credit union movement, serving in various local and national capacities over several decades.
The retirement event was widely attended by past and present colleagues. Donal was joined at the celebration by his wife Maureen and their children, Aidan, Maria, and
Amateur drama group Four Esquires Productions has announced ambitions to record a full-length feature film, with the ultimate goal of shooting the project entirely in Kerry using a local cast and crew.
The group has been working on various side projects, including short films, and has successfully pitched a potential feature film script.
Before embarking on the film project, the group will return to the stage for a three-night summer run at Courtney’s Bar on College Street from Monday, June 22 to Wednesday, June 24.
The upcoming production features four new short comic plays focused on dark humour and off-beat reflections on human behaviour.
Tickets for the performances are available via Eventbrite, and the group has also launched a new Instagram page to provide updates on both the live shows and their film ambitions.
“The summer is here that means two things. Warm rain and Four Esquires Productions have four new theatrical plays at Courtneys,” said spokesperson Brian Bowler. “The group have been busy on side projects including short films and successfully pitching a potential feature film. The end goal is to have it shot in Kerry utilising Kerry cast and crew. But before they do that we are back with new material and performers. We encourage all to get tickets in advance to avoid disappointment. Audiences can expect off beat reflections on human behaviour.”
Donal Cremin retires from Scoil Phobail Sliabh Luachra
Donal Cremin retires from Scoil Phobail Sliabh Luachra Staff at Scoil Phobail Sliabh Luachra in Rathmore gathered in late May...
Four Esquires Productions’ ambitions for a full-length feature film in Kerry
Amateur drama group Four Esquires Productions has announced ambitions to record a full-length feature film, with the ultimate goal of...
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