How do I find good companies to invest in?

Congratulation to you for starting your journey to financial freedom.

However, You should know the differences between an investor and a speculator. Investors are those who invest for the long term. They only invest based on the intrinsic value of the company. On the other hand, speculators (or traders) invest in stocks for the short term. They are usually concerned by the fundamental and technical analysis of the stock they are investing in.

Back to your question: How do I find good companies to invest in?

If you're investing for the long term, you'd need to find the intrinsic value of the stock. You would need to learn to read the company's financial statement, check if the product the company produces will still matter in five to ten years, and also ensures to know more about the leadership of the company.

Alternatively, if you want to invest for a short time, you would need to understand the technical and fundamental analysis. Learn and find a good entry point to enter the market and make sure you decide the right place you want to get out. Most importantly, to be a successful trader, you'd need to have the psychological strength to control loss.

Legendary billionaire Warren Buffett stated that traders should only buy companies they understand.

So, this is your first step.

The next measure you could employ is combing through exchange-traded funds (ETFs) and look at what businesses are in these funds because they could be good companies to invest in now.

You should also monitor the news headlines, study industry research reports, and listen to what the smart money is saying. You might come across a news story that could prompt you to buy a stock that could have quite a run in a couple of years.

Now, if you are a long-term investor, and you plan to hold the stock for many years, the best time is now, or when there is a substantial dip.

If you are a novice investor, it does not matter if you can or cannot determine if the stock is going up or down. If you are confident in the stock and your due diligence, it would be wise to just dollar-cost average (DCA) your security.

In the end, if there is not one specific stock, you can always just invest in index funds!