How do we evaluate companies when deciding what to invest in?
It is a tricky question ha!
but don’t worry, in this article, I will keep it short but informative
Basically, you need to set your goal first, Investing is not a short-term plan “never been and never will be”
Any promises of short wins will end up being a victim of scams or fraud.
Investing has the potential to generate much higher returns than savings, but that benefit comes with risk, especially over shorter time frames.
So, it is up to you to consider three factors: safety, income, and growth of the company.
Income:
Experts recommend setting aside at least 5% to 10% of your income for investing in stocks, bonds, and other assets as most big investors do monthly.
Growth of the company
Try to read about the company and its future plans and the history of its stock before you decide Also try to Identify the industry’s economic characteristics and know about the products or services that the company you will invest in offers.
As Harvard Business Review states about measuring the growth in the article “The Five Stages of Small Business Growth” link: https://hbr.org/1983/05/the-five-stages-of-small-business-growth
I will keep it simple. It summarizes the process of measuring the growth in some points:
· Existence
· Survival
· Success
So, as I said before let's skip all the complicated economic terminology and keep it simple
safety
Finally, you should use a safe trusted platform so you can use it to save your money and invest in it
Conclusion:
Identify the company you will invest in, set your long-term goal of how much money you will invest each month, and keep track of the company news
Any promise of short wins will end up being a victim of scams or fraud.
Do your homework about the companies you wish to invest in, Start with a steady amount, and try to be patient as this is the secret ingredient in investment
Try the Egyptian stock market and bonds
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