Seven Habits of Successful Investors

2 years ago JCprojectfreedom 0
The seven habits of successful investors Straits Times – A recent report from Allianz Global Investors on “The seven habits of successful investors” addresses concerns and problems commonly faced by retail investors. Here is an excerpt of the seven tips to guide you on your investment journey. HABIT NO. 1: KNOW YOURSELF AND CHALLENGE YOUR INTENTIONS Lessons Read More

Stock Research Checklist – Inventory

2 years ago JCprojectfreedom 0
In business, inventory is an important part of the process. After the manufacturing process is completed and the product is ready to market or sell to the customers, a business is left with inventory. What is the inventory buildup? As an investor, you need to calculate the inventory level as a percentage of sales and Read More

Stock Research Checklist – Assets

2 years ago JCprojectfreedom 0
Assets Trying to identify companies that have hidden assets that are overlooked is beneficial because those stocks trade cheaper meaning you can get more reward by investing in them. Does the Company Have Any Hidden Assets That Have Been Overlooked by Wall Street? Sometimes, Wall Street does not recognize the value of those reserves and Read More

Stock Research Checklist – Management

2 years ago JCprojectfreedom 0
When you are dealing with fast growing companies, pay special attention to how the business has been growing recently and what plans the management has in place to grow the business in the future. What is the Company’s Growth Recently? What Plans does Management Have to Grow the Business? As an investor, you need to Read More

Stock Research Checklist – Dividend

2 years ago JCprojectfreedom 0
If a business operates with stable cash flow and pays cash every quarter and the management does not have the opportunity to reinvest in the business, they can pay the dividend to the shareholders. If you are looking for income from your stock portfolio, you can select companies that pay conservative dividends and hold those Read More

Stock Research Checklist – Capital Investment

2 years ago JCprojectfreedom 0
Return on Asset = Net Income / Total Asset Total asset consist of debt and equity. This percentage gives the percentage of net income generated for the money invested which includes both debt and equity capital. As long as ROA is high, company shareholders will be greatly rewarded. What is the Company’s ROA for the last Read More

Stock Research Checklist – Profit Margin

2 years ago JCprojectfreedom 0
Net profit margin is a percentage in terms of how much net profit is generated from each dollar of revenue. Net profit margin = Net income / Revenue x 100 If a company increases its earnings, that is good. The next thing you need to identify is whether or not a company can maintain that Read More

Stock Research Checklist – Equity

2 years ago JCprojectfreedom 0
Return on Equity is how much profit the company is generating with the shareholder’s money. As a shareholder, you can earn lot of money over time with a company that has a high ROE. What is the Company’s ROE for the last 10 years? Does it trend upward? ROE = Net Income / Share Holder’s equity In EPS, Read More

Stock Research Checklist – Debt

2 years ago JCprojectfreedom 0
DebtDebt is an important part of business. If it manageable debt, then it is acceptable. If the debt load is very high, it will be very hard for that business to succeed, sometimes the company will even end up in bankruptcy. The investors will end up losing all their money. Some industries are capital intensive, they Read More

Stock Research Checklist – Earnings

2 years ago JCprojectfreedom 0
Examine Earnings Growth  Earnings Per Share (EPS) = Company Net Income / Number of Shares Outstanding When you are using the number of outstanding shares, use the fully diluted shares instead of outstanding shares) Here is the calculation to get the EPS growth rate FV = Future EPS value PV = Current EPS value N Read More