How to Start Investing Pt. 2

Like I mentioned in my last post, I’m going to be explaining what to look for or what questions to ask before you start investing in a company. The first thing is to pick the company you want to start investing in. After selecting your company you want to make sure you know what the company does, Warren Buffet has stated he doesn’t invest in what he doesn’t know. Once you know what company and what that company does you need to answer a simple question, is this company profitable? You can figure this out by sifting through quarterly and annual reports. Next, you need to figure out the company’s earnings history and the outlook. This also consists of going through reports of the company, and figuring if the company will last. Following this step is figuring out how valuable purchasing one of these stocks compares to others. One of the more important steps is identifying the company’s competitors,  and how they stack up against them. Finally, learn about the leadership style of the Chief Executive Officer, a leader is a key role in company’s, a great leader can shape the attitude of the entire company.

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