How to choose a profitable stock for long term investment?
Answers
Ways To Choose A Stock For Long Term Investment:
The First thing to do for selecting a stock for long term investing is to do the fundamental analysis of that specific company. Now the question in your mind will be what is fundamental analysis. Fundamental Analysis is analyzing and knowing the company well about the stock of the company you want to invest in. We need to check is the company is making profit and how much profit they are making, are they paying all the employees regularly, are the employees happy in that company. Fundamental Analysis has two parts one is qualitative aspect and Quantitative aspect.
Where will we find all the details about the company to do fundamental analysis:
This data can be found in the annual report of the company every publicly listed company in the stock market publishes an annual report consisting of all the details that I have mentioned above by reading the annual report of the company we can find out if the company is worth investing in will it do better in the future will we get a good amount of return by investing our savings in that specific company.
Where to get the annual report of a company:
The annual report of a company can be found in the official site of the stock exchange. It can also be found in the website of the company. The other place to find the annual report of a company is by going to a third part site like screener, Moneycontrol.com etc. These third part websites will also have an analysis which they have done about the stock but it always of better for us to see the annual report of the company and make it on our own by this we can avoid all kinds of false information etc which can mislead us.