How Do You Invest In Common Stocks Using Value Analysis?
Successful investing in common stocks is chiefly dependent upon intelligent security selection. While there are many techniques and strategies towards this end, none have proven to be more effective than value analysis. This article will explain, step by step, value analysis based upon the companies financial position and its current stock price. The first step to successfull investing in common stocks is to identify your needs as an investor. In order to do this, investors must ask themselves several basic questions: 1) Is income generation a requirement for my investments? 2) Are their specific tax considerations that I need to take into account when I invest? 3) What is the time horizon for my investments? 4) What is my risk tolerance? Answering these questions should be a serious exercise for all investors. However, this is not the topic of this article. I only mention this so as not encourage investors to simply start analyzing stocks based upon the techniques I will identify in t
