- Whether the company has a strong balance sheet or a week balance sheet (debt-to-equity) and how it’s rated for financial strength.
- The cash position.
Currently I use a checklist for stocks, following investors advice, aside from value, these are things to look at in a stock:
- The P/E ratio. It is high or low for this particular company and for similar companies in the same industry
- The percentage of institutional ownership
- Whether insiders are buying and whether the company itself is buying back its own shares. Both are positive sings.
- The record of earnings growth to date and whether the earnings are sporadic or consistent.
If you're a new investor, here are some tips to help you get started:
Establish a Plan, Understand risk, Invest Regularly (consistency is king), Invest: Don't speculate, Don't chase the hot topics (e.g. AI), if you don't know a lot DCA is your friend.
@JamesClear Completely agree. It's crazy how sometimes we do not act and while at home you feel tired, and don't want to go to the gym. After your first set you feel completely different, it's like magic
The difference between how I feel before my first set in the gym and how I feel after my first set is enormous.
You don't even need a full workout (or work session, etc.) to feel good again. You are 5 minutes away from putting your day on a completely different trajectory.
@IrrationalMrkts The latter is a software provider and has a growing earning history per year and a customer base that’s expanding. It has consistent revenues growth and now they are improving the operating margin, I think they could both grow quite interestingly
@IrrationalMrkts Currently Im looking at two software companies, #RMNI and #CLMB, the first one offers support for companies with Oracle, SAP and other softwares at a lower cost. Very interesting!
A CFA is the most prestigious degree you can earn as a professional investor:
• It costs around $4,000
• You need to study 1,000 hours
• The pass rates are less than 40%
I am sharing a 12-page Cheat Sheet with everyone who's interested: