What things do you take into consideration when investing in a particular company?

Question

What are some of the things that you look for when deciding on which company to invest in?

Answer 1

Below is kind of a checklist that I use when considering whether to invest in a company...not all my investments have all the following attributes but I like to invest in companies that have most of them.

1. Is in an industry expected to grow faster than the market avg.
2. Has stable management
3. Has an earning growth rate near or higher than the P/E ratio
4. Has increasing cash flow from operations
5. Insiders are buying more shares on the open market
6. Has little to no long term debt
7. Is buying back shares

Answer 2

You want a good, strong company like General Electric, Johnson & Johnson, Microsoft.

But this is a complicated subject so you should go to your library and get a book on investing or buy a book from amazon.com like -"The Only Investment Book you will ever need."

Good luck!

Answer 3

oh my gosh, that is such a very big and broad question and it's all relative. it depends upon a lot of things such as what type of investor are you, aggressive, moderate, or mild can determine what kinds of investments you should consider. not only that, then there is research on the specific companies/businesses you're interested in. i recommend buying investment books. buffet books are probably very helpful. and then there's information on investments on the internet you can search for. but it you want one particular answer it is the p/e ratio of a company. :)

Answer 4

There are many things to consider when investing in a company.Do your research to find out the financial status of the company.How is the mangement and what are their future plans.
Check the website link below to learn more about how to select the best stocks.

http://money-review-site.com/shares.html

http://www.smart-investments.org/Best-Stock-Investments/How-To-Invest-In-Stock.php

Answer 5

A P.E. under 20 and a positive EPS. The higher the EPS the better. I also look for vloume to be 50,000 or more shares traded a day.

Answer 6

I alwas do before going to choosing a best answer. Which the first answerer answered of my question as per demand of my question and it's solved problem or really try to solved my problem even that answer short or long so i go for that one.