Never invest in stocks without doing your own research, if you want to become a smarter investor always look at these 10 things:
$10,000 invested into these stocks 10 years ago would be:
$1,142,000 $NVDA Nvidia
$345,000 $TSLA Tesla
$132,000 $AAPL Apple
$114,000 $META Facebook
$109,000 $MSFT Microsoft
$91,000 $UNH United Health
$90,000 $AMZN Amazon
Here is what to look at when researching a stock:
$1,142,000 $NVDA Nvidia
$345,000 $TSLA Tesla
$132,000 $AAPL Apple
$114,000 $META Facebook
$109,000 $MSFT Microsoft
$91,000 $UNH United Health
$90,000 $AMZN Amazon
Here is what to look at when researching a stock:
1) Understand the business model & how they will make money, know:
β’ What they do
β’ Their products
β’ How they make money
β’ Why are they important
β’ Opportunities/ Growth/ Catalysts
β’ MOAT/ Strengths/ Positives/ Advantages
β’ Downside/ Negatives/ Weaknesses/ Threats/ Risks
β’ What they do
β’ Their products
β’ How they make money
β’ Why are they important
β’ Opportunities/ Growth/ Catalysts
β’ MOAT/ Strengths/ Positives/ Advantages
β’ Downside/ Negatives/ Weaknesses/ Threats/ Risks
2) Know their peers, competition & competitive landscape:
β’ Is there a MOAT?
β’ How do the products compare?
β’ How do the financials compare?
β’ Strengths & advantages over peers/ competitors?
β’ How does this company stack up against its competitors & peers?
β’ Is there a MOAT?
β’ How do the products compare?
β’ How do the financials compare?
β’ Strengths & advantages over peers/ competitors?
β’ How does this company stack up against its competitors & peers?
3) CEO, Management Team & Leadership:
β’ Look into the LinkedIn profiles or management
β’ Google the CEO (A CEO with low/ bad rating is a bad sign)
β’ Check Glassdoor & Indeed to learn about the management
β’ Look at the 10-K annual report for the bios of executive management
β’ Look into the LinkedIn profiles or management
β’ Google the CEO (A CEO with low/ bad rating is a bad sign)
β’ Check Glassdoor & Indeed to learn about the management
β’ Look at the 10-K annual report for the bios of executive management
4) Future Growth Potential:
β’ Will the company scale?
β’ Look at past growth trends in financials
β’ Know about new products or a changing landscape
β’ Look at recent news, 10Qs, 10Ks, investor presentations, and statements to look for future growth news
β’ Will the company scale?
β’ Look at past growth trends in financials
β’ Know about new products or a changing landscape
β’ Look at recent news, 10Qs, 10Ks, investor presentations, and statements to look for future growth news
5) Financial health:
β’ Positive cash flows from operations
β’ Quick ratio > 2 to sustain operations
β’ Healthy Investing & Financing Cashflows
β’ Growing Balance Sheet & Income Statement
β’ Growth in revenue, net income, EPS & profit margins
β’ Positive cash flows from operations
β’ Quick ratio > 2 to sustain operations
β’ Healthy Investing & Financing Cashflows
β’ Growing Balance Sheet & Income Statement
β’ Growth in revenue, net income, EPS & profit margins
6) Earnings & revenue history. Look at financials and projections:
β’ Was there growth?
β’ Is there growth potential?
β’ Have they beaten earnings?
β’ Have they missed earnings?
β’ Has earnings remained flat or grown consistently?
β’ Was there growth?
β’ Is there growth potential?
β’ Have they beaten earnings?
β’ Have they missed earnings?
β’ Has earnings remained flat or grown consistently?
7) Valuations
β’ Overvalued or Undervalued?
β’ Look at R/E ratio, PEG ratio, P/S ratio, P/CF ratio
β’ How do valuations compare to peers & competitors in the industry?
β’ Overvalued or Undervalued?
β’ Look at R/E ratio, PEG ratio, P/S ratio, P/CF ratio
β’ How do valuations compare to peers & competitors in the industry?
8) Institutional Sponsorship:
β’ Are big banks and hedge funds buying or holding?
β’ How much of this company's stock is held by institutions?
β’ Are Wall St. institutions increasing or decreasing their position?
β’ Are big banks and hedge funds buying or holding?
β’ How much of this company's stock is held by institutions?
β’ Are Wall St. institutions increasing or decreasing their position?
9) Insider Trading:
β’ Is the CEO buying or selling shares?
β’ Is management buying or selling shares?
β’ Is the CEO buying or selling shares?
β’ Is management buying or selling shares?
10) Recent News. Google the company and look at recent articles:
β’ What are bloggers saying?
β’ Is recent news good or bad?
β’ What are news outlets saying?
β’ What are people on social media saying?
β’ Reasons for recent movement in recent stock price?
β’ What are bloggers saying?
β’ Is recent news good or bad?
β’ What are news outlets saying?
β’ What are people on social media saying?
β’ Reasons for recent movement in recent stock price?
For new investors, I recommend buying and holding an S&P 500 Index Fund, instead of picking individual stocks.
It's a simple and low-cost way to get exposure to 500 of the biggest & most successful companies in the U.S.
Historically, the S&P 500 returns ~11% per year on average
It's a simple and low-cost way to get exposure to 500 of the biggest & most successful companies in the U.S.
Historically, the S&P 500 returns ~11% per year on average
$100,000 invested into the S&P 500 over the last:
30 Years = $1.6 Million
20 Years = $660,000
15 Years = $390,000
10 Years = $300,000
5 Years = $168,000
3 Years = $150,000
Compound growth + long-term investing = one of the best tools in wealth creation!
30 Years = $1.6 Million
20 Years = $660,000
15 Years = $390,000
10 Years = $300,000
5 Years = $168,000
3 Years = $150,000
Compound growth + long-term investing = one of the best tools in wealth creation!
The stock market is a device for transferring money to the patient from the impatient! If you found this thread helpful, please:
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β’ Follow me @FluentInFinance
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