Choosing Large Companies

You're ready to become a hobby investor in the Toronto Stock Exchange. Hobby investors best start by investing in large companies because when you're starting out, you're learning, and there is a lot you don't know. When you buy big companies, you remove a tonne of risk. Big companies typically don't go bankrupt.

The first step to take as a hobby investor is to find companies that you want to invest in. You can do this based on the products and services you use and love, one you think is on the rise to market stardom, or one based solely on size.

The first two strategies for choosing companies allow your creative juices to flow. You can tap your creativity by watching the news, reading journals, reading the newspaper, searching the web, being an observant consumer, becoming an expert in a field.......the ways to tap your creativity in choosing companies is endless.

The third approach, choosing a company by their sheer size, is strictly data-based. No creativity required. No emotion involved. Here is the step by step process to choose a large company.

How To Find Large Companies on the Toronto Stock Exchange
1.) Cut and paste the URL to MSN Money Canada Stock Screener in your browser:
http://ca.moneycentral.msn.com/investor/common/find.aspx?company=CA%3aMFI.TO&nextpage=%2finvestor%2fquotes%2fquotes.aspx
2.) Locate the left hand toolbar header titled Find Stocks
3.) Click on Stock Screener (3rd link under the Find Stocks Header
4.) Click on the Market Capitalization drop down arrow
5.) Select As High As Possible
6.) Cleck Search Now
7.) The first Company Name listed is Royal Bank of Canada

So, now you have a list of 25 largest companies listed on the Toronto Stock Exchange. The majority of the 25 largest companies are in the financial and energy industry.

We'll take it from here next post.