If you ever watch the show Shark Tank, do you notice that the sharks ask questions like what does your business do? How will you use our investments to expand the company? Well, to understand why they ask these questions let's actually take a closer look at what is happening in these investors mind. In short, there are many different ways investors look at companies and decide which one to invest in. One way though is to look at it in 3 different stages. The first stage is to decide which group or industries to invest in based on the economic environment. For example, some industries may benefit from the Trump presidency while others won't. As an investor, you would choose among these group. This lead us to the second stage where an investor would compare companies among each other. In other words, investors look at the company that has an edge over others. In the third stage, an investor would look closely at the short list of companies and analyze it in 3 parts: what the company's plan, its management, and its financial analysis. Through this way, the investor would be confident about their choice with their company they invested in.
To find out more, you can visit http://stockcharts.com/school/doku.php?id=chart_school:overview:fundamental_analysis.
Hello Accelerated Math Students! As part of your Quarter 2 investment project, you will post on this blog using your holiday pseudonym. You will also comment on two other posts. EXTENDED DUE DATE: SUNDAY DECEMBER 11, 2016. The grades are now finished for the blog.
I like your post, it's very informative and very well written. I love the fact that you include the three stages a investor would look at and what they are. My question to you is, out of the three stages you talked about, which is the most important stage and which is the least most important stage for an investor to look at and why?
ReplyDeleteWell, imagine yourself as an investor. Think about it. If you want to invest in a good, strong company, you got to be confident about your choice of investment. So to answer your question, all these three steps are crucial. Without the first one, you can't get to the second one. You need to know the surface before you get deep.
DeleteThank you for sharing this with us. It was great how you mentioned the three stages of investing, and that there is more to the process rather than just choosing a company with a high annual rate of return. I definitely learned a lot from this post!
ReplyDeleteIt is very explanatory and easy to understand. The 3 stages was a good way of show how to invest in a good company and become successful.
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