Thursday, August 28, 2008

Picking Good stocks

How To Retire Rich By picking ‘good stocks’

What does it take to pick a good ‘stock’? How do you ensure that the stocks you pick will not only guarantee your long-term wealth but also long term peace?

You will discover in the next few lines.

Do you find confidence in what the CEO says about his stocks on TV? Or do you believe that any stock that is currently doing well in the stock market is a ‘hot stock’? These are no good reasons for buying a stock.

You should not buy a stock simply because it is moving up in value. A bad stock may appreciate for a few days or even weeks because of some generally favorable market forces.

Of course, no one can tell you which ‘hot stock’ will ultimately live up to expectation. No one can even say with accuracy what the general market trend will be in the future. But if you examine the performance of stocks that have weathered the storm over the years you will discover some similar traits they all hold.

What are those traits and how do you engage them in selecting stocks that guarantee your peace and comfort?

Pick stocks With Strong Management.

The most reliable stocks are owned by companies that are being run by good management teams. These teams consist of seasoned individuals with great respect for company policies and core value. A listed company that is run on a great management system is sure to endure on the long term. No matter what the market is saying per time it will always experience an upward trend. I would suggest that you keep off any company‘s stock that rises in value without a good management system.

Pick Stocks With Enduring quality and productivity.

Investing in a company’s stock that lacks clear evidence of quality products and relevant services is a death trap for any investor. A stock price doesn’t just move. Something moves it. If this ‘mover’ is not genuine, the stock lacks the credibility for a good ‘buy’.

Pick stocks With Healthy financial fundamentals.
Successful companies have solid financial fundamentals. They maintain good assets and stay away from bad debts. They manage their debt with great sophistication that keeps their investors at rest. Stocks with good financial fundamentals can be trusted… especially when combined with other traits.


Pick Stocks With Sound Business Philosophy.

A Company with strong upward trends may change its CEO or president but because it is founded on strong management principles and systems, they always maintain their track record of success. Promising companies know their core mission, their customers, their brand uniqueness and industry. They incorporate their best business values into their business policy. Their products are competitive and consistent. Therefore their stocks will be stable.


It is virtually impossible to tell what the general trend tomorrow will be. But you can choose to stick with stocks with a promising future. That way you will be sure that your stocks will appreciate consistently.

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