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Keys to successful investing (When to invest? (When you have money you…
Keys to successful investing
Invest in Public company
Understand how the company makes money
Invest at a reasonable price
Invest in a company that could last forever
Sell a product that people need
Sell a unique product
Elicit brand loyalty consumers are willing to pay for
Find a company with limited debt
Find a company where its profit is far out weight its debt
Looks fro high barrier to entry
Invest a company that immune to extrinsic factor
Invest in a company with low reinvestment cost
Dont require a lot of reinvestment capital
Generate a healthy cash flow to pay out in dividends to share holders
Avoid company with controlling shareholders
When to invest?
When you have money you dont need for 5 to 10 years
After paying credit card debt
After paying off student debt
After you have 6-12 months of money set aside to live on in case of emergency
Psychology of investing
How to withstand market volotility
Be financially secured
Dont get spooked by short term fluctuations
Do your own work
Invest at a reasonable price