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How to Select a Stock to Invest In
Today we are talking about how to select a business to invest in. You have to always remember a stock is not just a number on a screen but an actual company that is behind it. The stock will do as well as the company. So what are the things that you need to keep in mind when you look at the company.
Check out the Websites: ramblingmindshow.com/
Goodies here: https://linktr.ee/kelechiwuaba
1. Find a wonderful business. This is a business that has MEANING to you.
-Do you believe in the things the company does?
-If the company was the only company you owned for the next 50 years, do you think it can provide for you and your family?
-Or will you be starving?
3. Determine the worth of the business.
-I call this the Mamba Mentality of the business.
-Basically does the business have a MOAT or an edge, a competitive advantage?
-But another question you have to ask when you look at a business is, can you determine who the competition for the business will be? IS it actual businesses or regulation by government?
-What does the management team look like?
-A good business can be ruined by bad management
-Easy way to see management is how they do with the Return of Equity and Return on Invested Capital
-Also how do they manage the debt they have?
3. Buy the business at a discount aka determine the Margin of Safety of the Business. Warren Buffet calls this buying a dollar for 50 cents.
-This is the hardest part because unlike going shopping for cars or shoes or phones. Stocks do not come with a sticker price.
-This is where you have to determine the value of the business.
-This is the part where patience comes into play. Are you willing to wait until the right opportunity comes around to buy into that business?
If you have questions email me at [email protected]
Join the Discord: discord.gg/4Qj2pQ4
Find me on all the socials below:
www.instagram.com/ramblingmindshow/
youtube.com/leechimane
twitter.com/kelechiwuaba
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By Kelechi Iwuaba
5
99 ratings
Today we are talking about how to select a business to invest in. You have to always remember a stock is not just a number on a screen but an actual company that is behind it. The stock will do as well as the company. So what are the things that you need to keep in mind when you look at the company.
Check out the Websites: ramblingmindshow.com/
Goodies here: https://linktr.ee/kelechiwuaba
1. Find a wonderful business. This is a business that has MEANING to you.
-Do you believe in the things the company does?
-If the company was the only company you owned for the next 50 years, do you think it can provide for you and your family?
-Or will you be starving?
3. Determine the worth of the business.
-I call this the Mamba Mentality of the business.
-Basically does the business have a MOAT or an edge, a competitive advantage?
-But another question you have to ask when you look at a business is, can you determine who the competition for the business will be? IS it actual businesses or regulation by government?
-What does the management team look like?
-A good business can be ruined by bad management
-Easy way to see management is how they do with the Return of Equity and Return on Invested Capital
-Also how do they manage the debt they have?
3. Buy the business at a discount aka determine the Margin of Safety of the Business. Warren Buffet calls this buying a dollar for 50 cents.
-This is the hardest part because unlike going shopping for cars or shoes or phones. Stocks do not come with a sticker price.
-This is where you have to determine the value of the business.
-This is the part where patience comes into play. Are you willing to wait until the right opportunity comes around to buy into that business?
If you have questions email me at [email protected]
Join the Discord: discord.gg/4Qj2pQ4
Find me on all the socials below:
www.instagram.com/ramblingmindshow/
youtube.com/leechimane
twitter.com/kelechiwuaba