I am not a trader, so carrying out technical analysis to decide when to buy and sell by the minute isn't my thing. That is perhaps best left to a full time professional. For a working professional, a value investing approach is probably more appropriate.
Business
Business that lasts, not a flavour of the year thing.
Has products/services that is consumed again and again.
A business that is difficult for competitors to come in is best, less competition.
[I'd rather buy a company that supplies detergent than one that sells washing machines.]
Management
Reliable management, in sync with shareholder interests.
A management that owns and buy even more of their own stocks.
Not overpaying themselves as board members/executives.
Above board business dealings.
[Give me an honest management any day. One that seeks to rewards themselves exorbitantly in times both good and bad is really no different from the gold scam schemers. The only difference is that they 'steal' from investors in broad daylight without having to run away.]
Financials
Viable financials with positive Free Cash Flow (FCF).
Shows growth that is generally growing year on year. Positive earnings (EPS).
Profitable, yet undervalued. Low PE <15, PTB <1.0 (exciting)
Pays sustainable dividends; Dividends (DPS) < Earnings (EPS)
"It's the business, stupid!"
1 comment:
Stocks with consistent growth make good investment. It will be good if they pay decent dividend as well. Hence investors are compensated for waiting.
These 2 stocks fit into this criteria:
myasiaprivatebank.blogspot.sg/2016/12/two-of-my-forever-stocks.html?m=1
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