• Home
  • Services
  • Team
  • Contact
  • Blog
  • Home
  • Services
  • Team
  • Contact
  • Blog
  Broth Investing , investing advice, news, strategy and asset management
  • Home
  • Services
  • Team
  • Contact
  • Blog

    Author

    Broth Investing was founded on the idea investing could change lives and should be available to all.

    Archives

    February 2021
    January 2021
    September 2020

    Categories

    All
    AMC
    AMC Stock
    Gamestop
    Gamestop Stock
    Getting Started
    How To Invest
    Investing
    Nakeds Brands Ltd
    RMCF
    Stock Ideas

    RSS Feed

Back to Blog

How To  Analyze Your First Stock

9/23/2020

 
Let's say you've decided you want to choose stocks yourself. Great but where do you begin?

In our humble opinion this is a foundation of a great investment. Strong cash flows, low debt to cash flow ratio, selling at a discount to asset value and with a strong brand or physical prescense that is well defended. Warren Buffet calls this a moat. You want this to be long and deep and wide and with angry gators inside it. (Barriers to entry)

From there stick to industries you know and only invest what you can avoid touching for at least 3 years.

Other things to keep in mind, the free cash flow multiple and price to earnings multiples should be considered. Additionally pay attention to revenue and profit growth some stocks can look expensive but really be cheap.
0 Comments
read more



Leave a Reply.

Site powered by Weebly. Managed by Namecheap