The growth analysis process consists of 11 steps:
Analyze analysts’ data
Examine current valuation
Set target prices
Analyze business plan
Assess management quality
Gauge financial health
Analyze profitability and growth trends
Search for red flags
Check the price chart
Each step employs a corresponding analysis tool explained in detail in Part 2. The procedures described in this chapter assume that you’re already familiar with the analyses tools.
The chapter concludes with deciding when to sell, for many investors the most difficult step of the investing process.
It’s best to research several stocks at the same time. The process of comparing competing candidates ...