This is a general question so I will create a test case to give it a bit more direction.
Let's consider that I am intersted in buying shares of
MadeUpCompany Inc - a tech company that has been around for a while. I don't know much about them apart from what they produce; maybe I like their products which is why I want to invest in them.
Before jumping straight into it, I want to make an informed decision - is my investment likely to make me money based on X criteria?
What are the key things to research about the company and its past performance before buying their stocks?
- Find out the P/E ratio and how it historically fluctuates when the company releases a new product.
- How stable the stock is (how can I do that?).
- Do they pay out dividends.
- Check if the owners of the company are buying or selling shares in their own company.