Best Stocks to Buy Right Now 2012

The world of stock markets is intriguing. The rise and fall of stocks is usually unpredictable and the challenge for the investors lies in their ability to take smart decisions based on logic, analysis and often, intuition. After all, there are a large number of successful investors who have their unique way of taking investment decisions that is quite different from what the management books teach us as the fundamentals of investing.

Factors to Consider Before Buying Stocks

Those who are able to get the knack of stock markets and investing, rise to become billionaires. Warren Buffet, the multi-billionaire US investor, is a living example of the fact that simple strategies in investment world executed consistently for a long duration can work wonders. Obviously, you need to have sufficient capital to attract huge money! Buying stocks at the right time and selling them at high prices is a skill which can work wonders in wealth creation. Though most people decide about the best stocks to buy by seeing disclosures given on business news channels, newspapers and magazines, in this article, we shall know about the best stocks to buy by studying the aspects which are to be considered before taking any 'purchase' call.

1. Take Your Time, Research Helps
Finding the best stocks to invest is indeed not a child's play. It requires a detailed research and a lot of hard work. First of all, you should start by collecting information about the company's business. Try to find out the current activities of the company related to business expansion such as acquisitions, mergers, participation in bidding etc. Try to analyze whether these activities will be positive or negative for the firm by studying its balance sheet. Make sure that the company you invest in has a fundamentally sound business model and enough cash for fast business expansion.

2. It is True, Brand Matters
Ideally, you should go for companies which have been in the business for several years and have a good reputation in the market. Studying the quarterly, half-yearly and yearly financial results, which are posted on the company's website as well as on the website of the stock exchange is essential before you take a decision to enter the stock. New market entrants can refer to how to buy stocks for beginners for sound guidance.

3. Big Stocks, Big Value
The best stocks to buy in 2012 would be from the real estate, healthcare market, construction, information technology, utilities, and consumer goods sector. Generally, investment in blue chip companies having a large market capitalization is considered to be safe. Stocks of giant companies like Intel Corporation (INTC), General Electric Co. (GE), Merck & Co. Inc. (MRK), SIRIUS XM Radio Inc. (SIRI), Oshkosh Corporation (OSK) and Apple Inc. (AAPL) have done very well in the last couple of months. On the other hand, if you buy stocks with a small market capitalization at attractive prices, you can consider buying them for long-term returns. But, at this time you should remember that mid-cap and small-cap stocks are more volatile and have a tendency to under-perform in the market during financial crisis. Many stock market analysts are of the view that stocks of pharmaceutical companies, infrastructure and construction companies and financial services companies will do well in the coming days, as the economy recovers and investments shoot up in these sectors.

Growing Sectors, Perfect Goldmines
There are some other analysts who are bullish on the banking and information technology firms. In countries like China and India, banking sector is witnessing an upsurge as the goals of financial inclusion is being initiated at an unprecedented rate. Moreover, along with that, Internet companies like the giant social network websites Facebook are planning to go public in the coming months. Certainly, the love affair of stock market investors with Internet companies is set to witness some bullish trends in 2012. The dotcom boom of the 1990s may once again be the reality of stock markets all across the world. Let's wait and watch. It is to be noted that LinkedIn, one of the oldest professional social networking websites, that began almost a decade ago, had gone public in May 2011, and its shares had doubled at its NYSE debut, much to the pleasant surprise of its founders and employees.

Best Stocks to Focus Upon in 2012

The Eurozone crisis has already caused a state of uncertainty in the global market. Added to it, the rising oil prices, forthcoming US elections, and the never ceasing Arab Spring revolt has made social and political situation more tricky. Considering all this, stock market sentiments of 2012 aren't easy to predict. Nevertheless, here are some of the stocks that hold promise for good returns.

• Caterpillar( NYSE:CAT)
• FedEx (NYSE:FDX)
• Alcoa (NYSE:AA)
• Banco Santander (NYSE:STD)
• Hershey (NYSE:HSY)
• Capital One Financial (NYSE:COF)
• Mako Surgical (NASDAQ:MAKO)
• Microsoft (NASDAQ:MSFT)
• Arcos Dorados (NYSE:ARCO)
• Visa (NYSE:V)
• Apple (AAPL)
• Enbridge Energy Partners (EEP)
• Goodyear Tire (GT)
• Halliburton (HAL)
• Intel (INTC)
• Johnson Controls (JCI)
• Lockheed Martin (LMT)
• Royal Bank of Canada (RY)

Stocks can be bought by either calling up your stock broker and placing your order or simply buying them online. Though many investors enter the stocks at right levels, a good deal of them fail to understand when to sell their shares and often end up on the losing side. For this, tracking the stock market regularly is essential. So work hard, research smartly, and enjoy investing!

DISCLAIMER: This article is just for reference purposes and does not recommend any stock market transactions.