Complex Stock Picking Has Been Simplified

 

A company to be chosen as an investment, one should look for following qualities -

1. A strong leader with futuristic vision and strategic thinking: The company possesses a clear vision and is able to articulate it effectively. In a competition, this vision should align with the goals and expectations set forth by the management or organization. Developing a strategic plan and demonstrating how it can be implemented successfully is important to showcase leadership skills.

2. problem-solving abilities. It's very important aspect to look into a company that how it comes out of tough situation or how well it addresses those situations.

3. Adaptability and resilience: Company must have seen 2 - 3 recessions in the market, if organisation is new & has competitive edge then must possess all the other attributes as mentioned.

4. The Company with no debt or very less debt. Some of the great Companies have huge debt but that debt is utilised in increasing operation & business. Company making regular profits & growth.

5. Company with ROE 15 - 20% is considered good, if one can find out Stock giving ROE greater than that would be added advantage.

6 ROE considers profit generated on shareholders' equity but ROCE is the primary measure of how efficiently a company utilizes all available capital to generate additional profits. When ROCE exceeds ROE, it indicates that company has effectively used debt lower it's overall cost of capital. However, the higher ROCE shows that company is generating higher returns for the debt holders than for the equity holders. 

7. The Stock you opted should be dividend paying. 

8. Company should show continuous growth. Profit of the company should be seen in shares with rise in share price.

The company should be capable enough to differentiate the organization through the unique leadership style, and connect with the masses on a deeper level to maximize their chances of success.