2006-11-11 20:29:56 · 6 answers · asked by Kate 1 in Business & Finance ➔ Investing
Kinda' depends on what you're investing in, but basically, I would look at rate of return over at least a 10 year period (absolute minimum 5 years). Longer track records are better. Ten percent or more is good. Don't forget to factor in taxes, risk, and inflation. For example, taxes will eat about 2.5% of your 12%. Inflation will eat about 4% of your 12%. And risk is dependent on the type and volatility of the investment.
2006-11-11 21:03:00 · answer #1 · answered by KO 3 · 0⤊ 0⤋
Try this book:
The Warren Buffet Way (Robert G Hagstrom Jr)
"Your objective as investing would have simply to be to buy, to a rational price, a participation in a business that is easy to understand, and whose profits, are practically certain, go to be significantly higher daqui 5, 10 and 20 years. With the time it goes to discover that few companies if incase in this standard. Therefore, if to discover one, you must buy a significant amount of its action. You also must resist the temptation of if deviating from its lines of direction. If he will not be made use to keep an action during 10 years, prevents to have it per 10 minutes. It joins a wallet of companies whose profits march for top to the long one of the years, and the value of the market of the wallet will march together."
2006-11-12 07:43:01 · answer #2 · answered by Apolo 6 · 0⤊ 0⤋
Most of the various factors and methodologies I apply come from four different books:
http://www.amazon.com/How-Make-Money-Stocks-Winning/dp/0071373616
http://www.amazon.com/What-Works-Street-James-OShaughnessy/dp/0071452257
http://www.amazon.com/Rule-Strategy-Successful-Investing-Minutes/dp/0307336131
http://www.amazon.com/Little-Book-That-Beats-Market/dp/0471733067
The first defines the CANSLIM method, which is a momentum-based method, using both fundamentals and technicals.
The second is a review of various stock market metrics that have worked in the past.
The last two define methods that use the fundamentals to determine if a stock in undervalued by the market.
2006-11-12 05:01:29 · answer #3 · answered by Randy H 4 · 0⤊ 0⤋
I invest in companies whose products I use or enjoy, ie, Disney, Pepsi , Johnson & Johnson.
2006-11-12 05:56:33 · answer #4 · answered by Tweet 5 · 0⤊ 0⤋
By doing lots of reading and research
2006-11-13 06:37:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
also try technical analysis with freeeware aptistock for buy sell signal
2006-11-12 12:54:41 · answer #6 · answered by dinu_pawar 5 · 0⤊ 0⤋