Shares/Stock Things to Remember When Investing in Stocks

[Mika]

Before investing in the stock market, you need to remember these 4 key points:

Clean Management: You need to buy stocks from a company that has honest management that has a clean track record, has the experience and delivers the promises

Financials: A track record not only matters for the management but also for the company’s work record, which can be determined through financials such as sales and profits, cash flow, working capital management, ratio analysis, etc.

Growth Triggers: Financials tell about the old things, you also need to check the future outlook of the company. In order to become sure about the fast growth of the company, you need to see the company’s triggers and tailwinds.

Moat: Moat in business terminology refers to a distinct advantage a company has over other companies that protect its market share and profitability. A business needs to have competitive advantages and a moat which ensures that the company’s business is protected.

 

[Jasmine]

When you are buying stocks, it is very important to buy the right stocks for the right price. Right stocks means stocks form a profitable company or a company that shows the signs of rapid growth. Right price means the exact price of the stock, not the price that increases while the market is going up or decreases while the market is going down. The true value of stocks is not related to the stock market performance but the sales and profit margin of the company. You will have to see various indicators, not only in papers but also in the market Of all these points, do you know what most important point to consider is while investing in stocks? Well, you need to check the company’s valuations. You need to make a proper valuation of the company’s assets, liabilities, working capital, etc. Without understanding these key analytics, your stock investment will be nothing but a gambling .