Check Before You Buy!

I'm going to keep this article super brief. There are only two ways in which you can analyze a stock from a high level.
The analysis of a stock can be analyzed from a historical- or forward looking-perspective.

A historical perspective is when the analysis of a stock consists of its historical metrics and performance. By far, my favorite online tool to use for reviewing the fundamentals of a company is Qualtrim.com by Joseph Carlson. Other tools are far too detailed and complicated, and seek to charge $300+/month; absolutely absurd. Qualtrim is only $10/month, and is consistently being revised and improved over time.

On the other view, the present-perspective of a stock requires a sense of inclusiveness and understanding of the moat, benefits, and pipelines that a company may generate; as well as the threats that could disrupt the operations of the company.

Joseph Carlson has made a super simple and straightforward checklist that every investor should consider before purchasing a stock. Here are the following questions...

• ☐ As an investor, do I know how the company currently makes money?

• ☐ Would my company or I use their services or products? If not, would I understand why others may use their products and services?

• ☐ How will the company make more pipelines, products, and/or services to make and grow more money over time?

• ☐ Currently, has the company showed growth (relative to the expenses/debt that is being incurred)?

• ☐Are you familiar with the industry, as a whole, that the company is competing in?