Thread on
👉How to choose best stocks for long term #Investing.
1⃣ Check out fundamentals:
🔹Debt to Equity Ratio = 0 or <1
🔹Revenue Growth > 10%
🔹Net Profit Growth > 15%
🔹Return on Equity > 20%
🔹Earning per share increases 10% Y-O-Y.
(1/N)
2⃣ Business model of the company:
🔹What the company sells or what services it offers and how the company makes a profit from its operations.
🔹Whether the products or services exists even after 50 years.
(2/N)
3⃣ The management of the company:
🔹The educational, employment backgrounds of the persons in key positions i.e. CEO, CFP, COO & CIO.
🔹Whether the management promoters the business as an open, transparent and flexible way.
(3/N)
4⃣ Competitive advantage:
🔹Company that has a sustainable competitive advantages in respect of cost structure brand reorganization, product/services quality distribution network and superior customary support.
(4/N)
5⃣ Qualitative factors:
🔹A domestic player or a big gun around the globe.
🔹Strong entry barrier.
🔹Future plans i.e. expansion of business, marketing policy.
Team #Equity4Life
#Learning #Investing
#StockMarket #FundamentalAnalysis
