I have been reading a bunch of books about different investing principles from Graham, Perter Lynch, to articles from David Garner of Fool.com. Everyone has their own style and philosophies about investing. One thing that remained common in every one's investing principle is..believe in what you do and be rational about it. Meaning do not back of or have doubt in your decisions and stick to the decisions for a good amount of time.
I have made numerous mistakes while learning about market and companies. I have invested in speculative companies and even bankrupt penny stocks after reading some post in the Internet. It eventually turned out to be a good education for me. It helped shape my view of companies and other scams that go on.
So after while i thought of defining my investing philosophies and sticking with that. I started to follow a tiered process for looking and evaluating business
Following are my guidelines to identify the businesses that i might be interested in owning.
1. Do i know the company and its products? if not can i learn about them quickly
2. Does the company has a business or product that i use? if not, do i at least understand it
3. Does it have a fan following or loyal customers?
4. Do i know employees from the company and are they happy?
5. Does the company have some kind of dominance or market share?
6. Can i reasonably picture the company 10 years from now and see what they will be doing?
I have made numerous mistakes while learning about market and companies. I have invested in speculative companies and even bankrupt penny stocks after reading some post in the Internet. It eventually turned out to be a good education for me. It helped shape my view of companies and other scams that go on.
So after while i thought of defining my investing philosophies and sticking with that. I started to follow a tiered process for looking and evaluating business
Following are my guidelines to identify the businesses that i might be interested in owning.
1. Do i know the company and its products? if not can i learn about them quickly
2. Does the company has a business or product that i use? if not, do i at least understand it
3. Does it have a fan following or loyal customers?
4. Do i know employees from the company and are they happy?
5. Does the company have some kind of dominance or market share?
6. Can i reasonably picture the company 10 years from now and see what they will be doing?
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