Analyze stocks defensively


  1. Opt for index funds.
    These are very low cost and have been shown to improve well in the past.
  2. Go through these seven criteria before buying an individual stock:
    • Is the size of the enterprise adequate?
    • Does it have a strong financial condition?
    • Has the company had at least some common stock earnings in the past ten years?
    • Does it have interrupted dividend payments for the past 20 years?
    • Does it have a minimum increase of at least one-third in per-share earnings over the last ten years?
    • Does it have a fair price/earnings ratio?
    • Does it have a fair price-to-assets ratio?


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