How to select a company for investment: You’ve heard me talk about this a lot that the best time to invest is during a crisis when the markets are down and there are great opportunities to buy some cheap stocks. One question I keep getting is how to identify the right companies to invest in? If you want to learn how to select a company for investment, here are 6 steps that a company should follow in order to recover from the crisis:
1️⃣ Assess The Damage
A company should evaluate what the crisis has done to the actual business. Do they remain fundamentally strong?
2️⃣ Business Plan
See if the company is adjusting their business plan to take advantage of the situation and prepare for the future.
Has the company calculated the funds needed to a) recover and b) grow out of the crisis again?
4️⃣ Assess The Budget
Next to funding, you also want to know how a company allocates their funds.
Look at what a company has been doing during the crisis. Did they develop new strategies how to get out of it and also deal with future crisis?
All in all how does the company prepare for the future even after the current crisis is over?
Of course there is a lot more to it. Watch my live recording where I go into all the details about how to select a company for investment (use Chrome browser):
Which businesses do well, after a financial crisis? Which businesses should you invest your money in? What should a business be doing when a financial crisis is happening. Check out today's video to find the golden nuggets.
Posted by Lukas Xu on Saturday, 2 May 2020