By John Liongale, 08:41, 10-06-19
I invest through a 10 step common-sense plan for analyzing companies in the stock market. As a select dozen investors uses as they became ultra wealthy retail stock investors.
The 10 practical steps :
- How Big Is the Market (in $) for Business and their Products? (it dictates the full potential)
- Who’s Involved in This Business? Did any study for Princeton and Stanford? Or other fancy schools and what did they study? And what credentials do they have? [IT IS OF TRULY HIGH IMPORTANCE!]
- Estimate IQ of The CEO and Founders
- Imagine a small cap IPO with lots of potential in 1-3 and, for now must research what clients a business has already. If the clients aren’t well-known the risk is greater as such business can deal with worthless shell companies! [PUMP AND DUMP SCHEME]
- Does the business own unique and innovative solutions and products with mass-market appeal? And is the market they are in young or established? Search for innovation and barley before-seen solutions and HIGHLY VALUEABLE SOLUTIONS. But many IPO companies claiming “innovation” while being frauds! So, you must try to smell B.S. by analyzing the product in your head and if claims make sense.
- Analyze competition strengths and weaknesses in comparison to the company that you consider investing into.
- How satisfied are employees working for company? Check Glassdoor.com
- I only invest in innovative Tech companies. As it’s something I understand. And for me, it sounds as almost impossible to predict if a retailer chain with 10 stores, is going to have 200 stores by 2034. But different story with Innovative and highly scalable TECH companies! Acknowledge what happened with Facebook… as now Zuck is worth $70 Billion and just in mid 30s! (just in Tech! Right?)
- Does the CEO seem creative personality type or dull when speaking during presentations? Does CEO sometimes stumble on a few words and does CEO smile? or is CEO colder headed… avoid the cold headed CEO’s, as such leaders are mostly in for a quick buck
- Do board members and CEO share plans and goals for the future of the business. Like aiming for 15% yearly growth rate or hit 100 m in revenue by 2024. It’s great when realistic plans are mentioned by leaders. Instead of bold claims like: “10 years from today we’re going to have a 15% market share in the entire software field…” Bold statements and crooks running the show!
The above 10 step plan that I follow is for those who invest into small cap and midcap IPO’s(avoid microcap) in the USA and global… through tirelesss search for the right company and correctly analyzing it, we can find and invest in the next Microsoft or Oracle stocks during an IPO.
Now is the time to begin investing in the stock market. As solid companies with rock-solid CEO, Management, Product and else are always homeruns through a long-term hold strategy. Here is our Top Stock Brokers (link) and more for how to become a stock investor! 🙂