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 winning stocks.
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.
This article was originally published on MarketIntelligeneCenter.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.