When we discuss about investment we always want to find healthy company, with robust business. Because we never want to be speculators who have to check our account every day if markets still likes our latest purchase idea.
On the other hand even company in perfect shape can have some bad times, which don’t have to be always reasonable. We like those companies very much due to discount price (means not every company which goes down is bad to buy).
We like attitude of Warren Buffet who spend many hours by searching and waiting for the right stock in right time. For this reason we don’t have to find 20 companies to invest every year. We will be 100% fine with 3-4 companies which will deserve our money and we can be sure that our investment was done based on consistent strategy.
How we choose our stock?
As you can notice we are mainly focused about stock market and reality market when we speak about investment. The reason of this is that we find this investment interesting in point of possible profit and we believe that more time you give this activity (investigation, self-study, calculation etc.) the higher profit you can make (and lover risk of wrong choose).
Of course we also have to say that nothing is granted, but you already heard this many time so we think we can speak more about really interesting items.
We focus on past, current and future incomes of company, Debt/ EBITDA, PE ratio, forward PE ratio EPS ratio, PEG ratio, dividend, expected share price in 3 years and of course actual price. This is not 100% sure analysis, but it helps a lot to choose healthy companies and eliminate the bad ones. We tried to use this system about 6 months ago for first time and it shows very good results since than. As for everything we will try to improve this analysis so we all can use it’s benefits.
For this you will not see here so many investment tips with highest ranking (we choose carefuly) from us as we don’t want to only buy what everybody else buys. We want to buy and hold for long time.