What does “Doing your due diligence” really means? What should you do to avoid buying a stock that does not suit your investment plan?
Today, we guide you through the due diligence process with the 5 Most Important Points before buying.
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- Understanding a business model goes beyond knowing what they do. It’s also about understanding when a company will thrive and when it could take a hit.
- Why focusing on the worst-case scenarios rather than the optimist ones will prevent you from impulsive moves. Never forget about the downsides of a company!
- How can the investors’ relation website help and which information to look for? Then, how to link what you’ve found with the dividend triangle.
- Why the 10-year data can be misleading and how the 5-year one is a better choice.
- Before buying, you need to understand the different financial metrics and know when they are useful. Which metrics should always be part of your due diligence?
- The importance of consistency and a clear investment process.
- How to prevent yourself from getting too excited by a stock.
- How do we know we have completed our due diligence?
Payout ratios can be a good start in your investigation of a company’s dividend safety. But which one should you use? What’s a good payout ratio and what does it tell you exactly? This is what you’ll find in this episode.
Having a buy list is crucial. Here is how to create the best one using must-have metrics and the tools to assess the future of a company.
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