What factors should I consider when making a decision to invest in a corporation’s stock?
One must always consider a more global perspective when considering a corporation’s stock as an investment than just the numbers. The suggestion is to understand more about the corporation’s direction, market position, products, and future market growth information than the financial metrics. Profitability and financial health are important, however it is more important to understand the challenges and assets a corporation has to meet those challenges in the future as that will determine future performance. Remember, accounting is all historical reporting. Any numbers you see published in SEC releases and financial analysis are based off of business events that have already occurred.
