Resources for research

For best results when investing in stocks, do some deep digging into the companies you’re considering first. You’ll want to ensure that each is healthy and growing, with competitive advantages, a rosy future and an appealing price.

It can take a while to get good at evaluating possible investments. Some books that can help are “The Little Book of Value Investing” by Christopher H. Browne, “The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments” by Pat Dorsey and “The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit” by Aswath Damodaran (all Wiley, $25). You’ll also find many research resources online:

• Start at a company’s own website, and click on links with labels such as “About Us” or “Investors.” The latter should feature annual reports and earnings reports to review. Checking the “Jobs” or “Career Opportunities” section will offer insight into how intensely the company is hiring, and in what fields.

• Many major brokerages these days provide detailed research reports prepared by Wall Street analysts and other professionals from a variety of sources. These can help you quickly learn more about various companies, how they make their money, challenges they’re facing and how promising their futures are. A simple “buy,” “hold” or “sell” rating from an analyst doesn’t tell you much, but a report of several pages can be very enlightening.

• At websites such as Finance.yahoo.com, Morningstar.com and Fool.com, you can enter a company’s name or ticker symbol and find a lot of data, news and articles. Don’t forget the business section of your local newspaper, either!

• To learn more about various industries, try searching online using terms such as “introduction to banking, “trends in retail” or “the energy industry.” The savvier you become, the better your investing results should be.