Stock Research Checklist – Business Characteristics

3 years ago JCprojectfreedom 0
Are you able to understand the Business Thoroughly? Is it a Simple Business? What are the company products? How does the company generate revenue? How is the company market its goods and services? What is the competitive landscape of the business? Do you understand the business life cycle? Companies that are involved in simple type of business Read More

Invest now

3 years ago JCprojectfreedom 0
Invest Now Most people wait until they are in their thirties, forties and fifties to start saving money. They realise that they are not getting any younger and will require additional money for retirement. The trouble is, by the time they realise they ought to be investing, they have lost valuable years when stocks could have helped them with their goals. Read More

Moats in Investing

3 years ago JCprojectfreedom 0
Keeping Competitors Out Warren Buffett says,” A truly great business must have an enduring “moat” that protects excellent returns on invested capital. A company needs to do something very well in order to grow their business profitably. A moat protects a business from its competitors. It is a durable competitive advantage which keeps competitors away Read More

Low Interest Rates Dilemma

3 years ago JCprojectfreedom 0
Low Interest Rates Dilemma Low interest rates will create a dilemma. Will you accept a low return in order to protect your principal? Will you take on higher risk to achieve higher return? Pay attention to costs In a low interest environment, investing expenses will have a larger impact in eroding your gain. For example, a mutual fund with Read More

What should I do when the stock price drops?

3 years ago JCprojectfreedom 0
What should I do when the stock price drops by 30%? Knowledge is a very powerful tool. Investing requires knowledge and familiarity of the companies that you choose to plough your hard earned money into. This may be a good reason not to own too many stocks but invest within your circle of competence. You need to Read More

Cash Flow Statement

3 years ago JCprojectfreedom 0
The Statement of Cash Flows This statement shows the value created by the company based on how much cash generated year to year. This is the most important section of the financial statements. The cash flow statement strips away all the abstract, non cash items such as depreciation which you see on income statement and Read More

Income Statement

3 years ago JCprojectfreedom 0
The Income Statement The Income Statement explains how much money the company is making or losing. Revenue Revenue also known as sales is how much money the company has brought in during a quarter or a year. Larger companies sometimes break down revenues on the income statement according to business sector, geographic region or products Read More

Balance Sheet

3 years ago JCprojectfreedom 0
The Balance Sheet The balance sheet tells you how much a company owns in its assets, how much it owes in its liabilities, and the difference will be equity. Equity represents the value of money the shareholders have pumped into the company. Assets – Liabilities = Equity Current Assets Current Assets are used up or Read More

Annual Reports

3 years ago JCprojectfreedom 0
Reading Annual Reports A company’s financial reports are akin to a medical report of a person, it will display the health status. The financial reports consist a lot information which involved the management team and financial statements. Financial reports help the investor to make the decision whether the company is still worthwhile to invest in or it is Read More

Prudent Investing

3 years ago JCprojectfreedom 0
Prudent Investing Do you buy stocks based on what your friends, relatives or stock analysts recommend? Prudent investing is a mindset and philosophy of investors. Successful investing is accumulation of shares in a good business. The business grows or deteriorate on a daily basis but the share price tickers will fluctuate on a daily basis more than the actual business condition. This is what Read More