Chapter 22
Ten Indicators of a Great Stock
IN THIS CHAPTER
Taking note of a company’s profits, sales, and liabilities
Looking for bargain stock prices and growing dividends
Paying attention to politics and megatrends
In a book like this, the ultimate goal would be to identify the Holy Grail of stock investing — the stock — the kind of stock that, if stocks were people, then Apple, Amazon, Procter & Gamble, and Microsoft would be peasants compared to this king. Yeah, that’s the kind of stock that would be the Grand Pooh-Bah of your portfolio! Well, hold your horses.
That stock is likely in heaven’s stock market right now, and you have to be firmly planted on terra firma. If you have a stock that has all the following features, back up the truck and get as much as you can (and let me know so that I can do the same!).
Seriously, I doubt that you’ll find a stock with all ten hallmarks described in this chapter, but a stock with even half of them is a super-solid choice. Get a stock with as many hallmarks as possible and you likely have a winner.
The Company Has Rising Profits
The very essence of a successful company is its ability to make a profit. In fact, profit is the single most important ...
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