HOW TO CHOOSE STOCKS TO INVEST FOR LONG TERM WEALTH CREATION ?

A THREAD🧵

In this thread I'll list down all the checkpoints to find multibagger stocks by doing self-search even if you are new to stock markets

Let’s check 👇

1. Think yourself about a business which you wanna start to invest in as an entrepreneur

2. It should meet the following criteria :

i) Good Sustainable Margins
ii) High Growth In The Years To Come
iii) Require less Regular Capital Expenditure
iv) Pricing Power

3. List out the sectors like Chemicals, IT, FMCG, Media, Etc

4. List out the companies operating in that sector. You can use google and business magazines like Dalal street, etc for the same

5. Filter companies which are promoted by reputed business houses or good promoters

6. Check there products and reviews from clients/users or stakeholders engaged with them like retailers, consumers, etc. Whether they like it and what’s there view

7. Check demand elasticity of the product like if it’s medicine/consumer goods then demand is almost inelastic

8. Check government regulations if anything can cause severe impact to the industry or to the business like cigarettes or Alcohol if banned or duty increased by Govt can severely impact the Company

9. Try to avoid highly government regulated industry.They are generally laggards