Thread by @Rishikesh_ADX

Thread on

👉How to choose best stocks for long term #Investing.

1⃣ Check out fundamentals:

🔹Debt to Equity Ratio = 0 or <1
🔹Revenue Growth > 10%
🔹Net Profit Growth > 15%
🔹Return on Equity > 20%
🔹Earning per share increases 10% Y-O-Y.

(1/N)

2⃣ Business model of the company:

🔹What the company sells or what services it offers and how the company makes a profit from its operations.

🔹Whether the products or services exists even after 50 years.

(2/N)

3⃣ The management of the company:

🔹The educational, employment backgrounds of the persons in key positions i.e. CEO, CFP, COO & CIO.

🔹Whether the management promoters the business as an open, transparent and flexible way.

(3/N)

4⃣ Competitive advantage:

🔹Company that has a sustainable competitive advantages in respect of cost structure brand reorganization, product/services quality distribution network and superior customary support.

(4/N)

5⃣ Qualitative factors:

🔹A domestic player or a big gun around the globe.

🔹Strong entry barrier.

🔹Future plans i.e. expansion of business, marketing policy.

Team #Equity4Life
#Learning #Investing
#StockMarket #FundamentalAnalysis