Stocks
10 Questions to ask before buying any stock
By Finance Madness
November 25, 2022
What does the company do?
1
Understanding the business in less than 5 minutes is important
Who runs the company?
2
Perhaps the most important factor is to understand the background of the promoters
Is the company profitable?
3
Check whether the company is making at Operating Level or at Net Profit Level
Does the company have a sustainable advantage?
4
Having a Moat is important for sustained company performance
How strong is the company's Balance Sheet?
5
Healthy Balance Sheet enables a company to grow in future
How is the past 3 years performance of the company?
6
Recent performance should be analysed
Was the company involved in any fraud in the past?
7
Check the filings to determine about any frauds
Who are the competitors of the company?
8
This will tell a great deal about how well the company will do in future.
What is the Debt / Equity ratio of the company?
9
An overly leveraged company can pose a danger to its survival.
What is the valuation of the stock compared to other competitors?
10
This will show whether company is over or under valued