| 1. Know the business |
| Warren Buffett, one of the world’s most successful investors, follows the philosophy of buying stocks of only those businesses that he understands. |
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| 2. Assess the past performance |
| All companies present details of their financial performance in their Annual Reports. In case of a company having its Initial Public Offering – IPO |
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| 3. Know the promoters |
| The promoters and management team of a company are the key people who drive its business. |
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| 4. Assess the future prospects of the company |
| Although a company may have performed well in the past, it is not necessary that it will continue performing well in the future. |
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| 5. Assess the stock price |
| As mentioned earlier, the share price of all companies continuously fluctuate on the stock markets with investors buying and selling the shares. |
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