Unfortunately, there is no magical formula for spotting
winning stocks. There is no guarantee that any stock we decide to
purchase will not run into problems and wind up costing up a lot
of money. I wish there were, but there simply is not.
Luckily for us, there are clues that we can look for which can
increase our chances of picking the right stocks to put in our
portfolios. In some cases, it is simply a matter of finding
companies that are able to consistently return money to
shareholders. Or perhaps it is as simple as finding companies
that do not face a large threat of new competition.
Both of the above are examples of things to look for when
picking winning stocks, but they are just two of many different
characteristics we often see over and over again when examining
This week we are going to build on that list, and identify
five different characteristics of a strong stock. In each case,
we will discuss the characteristic, and then look for a stock
that exemplifies the trait.
We will be looking at just one example of each five
characteristic, but the key to remember is that for each
characteristic we discuss there are many stocks that we could
have used as our example. Use the examples in this article as a
starting point in your hunt for other strong companies to add to
your investment portfolios.
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