It’s essential to thoroughly consider any investment before you part with your hard-earned cash. You’ll probably find it relatively easy to spot profitable investments in a strong economy, but without adequate research, you’re likely to struggle during more challenging economic circumstances.
I’ve created a list of things to look out for when you’re considering an investment opportunity. Take a look and ensure you’re ticking all the right boxes.
1) How Far Into the Future Are You Planning to Invest?
Do you need your money back by the end of the year, or is this a longer-term investment? Consider what your money will ultimately be used for. You might end up losing money if you liquidate the investment prematurely.
2) How Does the Company Make Money?
Learn this, and you’ll put yourself in a great position to determine the viability and outlook of the company in question.
Remember: It’s really tough to invest in a company you don’t understand. I don’t know anything about Lacrosse, so it would probably be unwise for me to invest large sums of money in a company that produces the sticks…or rackets…or bats. Or whatever they’re called.
I do know, however, someone who knows how to evaluate companies. Click here to find out more.
3) How Well is the Company Doing?
Have their earnings been steadily increasing year-on-year? What is the debt-to-equity ratio? Price-to-earnings ratio? Examine the company’s finances closely in order to successfully determine its financial stability and profitability in the future.
My Tip: Beware of buying into any hype that has temporarily driven up stock prices to an unusually high price.
Would you like to learn the technique to evaluate a company’s profitability? (even if you don’t have a finance background). A friend of mine is willing to explain. Click here to find out more.
4) What Does the Future Look Like?
Think about whether consumers are always going to want the product a company is selling. Consider also the infrastructure of a company – is it poised to continue thriving long into the future?
Remember: All companies must evolve or dissolve in time. Evolution is necessary, sure, but it also presents an opportunity for mistakes to be made. It’s a great sign if a company can constantly evolve while maintaining its appeal.
What if you can learn to discern a company’s future outlook? Would that skill be beneficial to you? If you’d like to know more and you’re available on 7th or 8th March, click here…
5) Who is Running the Company?
You probably won’t get the chance to meet the CEO and senior team of a company you’re investing in, but that doesn’t mean you can’t learn about them. Use Google, and get an idea of who you’re investing in, not just what you’re investing in.
Ask Yourself: How long have they been with the company? How long did they stay at their previous positions? How successful have they been in the past? What happened to the corresponding stock prices during their tenures?
What if I tell you that my friend DOES get to MEET the CEO of the companies that he invests in? And that he gets to ask a ton of clarifying questions prior to investing in those companies? What if he can get you invited too? Click here if this sounds interesting to you, and you’d like to know more.
6) Who are the Primary Competitors?
Any profitable market will have competition. It can be a nuisance for investors, but a blessing for consumers, so don’t complain! Consider the points I’ve made so far not just for your potential investment company, but for its competitors too.
7) Could the Money be Better Spent?
Investing in stocks, real estate or anything else is all well and good, but not if you’re saddled with high-interest credit card debt. Your most profitable investment might be eliminating that debt first.
Obtaining as much information as possible about a company’s past, present and future prospects will make investing that much easier. So many investors fail to do so, and in turn fail to maximise their returns.
Rather than a form of gambling, treat investing like a part-time job. You’re not buying a lottery ticket here; you’re doing your research and investing wisely, as a result. Follow my advice, and you shouldn’t need good fortune to make a small fortune.
As always, thank you for reading. I love sharing good advice and helpful techniques. There’s only so much I can articulate in an article, if you’d like to know more; block your date on 7th or 8th March. Come and discover simple but powerful investing techniques that will help you earn passive income. Click here for more information.