How to Pick the Perfect Stock

1. Business You Understand

Don’t invest in buzzwords. Invest in businesses you actually get.

If you can’t explain what the company does in 1 sentence skip it.

2. Consistent Revenue & Profit Growth

Look for companies that show steady growth over 5–10 years.

Growing sales + profits = a strong business model.

3. Strong Competitive Advantage (Moat)

Does the company have something others can’t copy easily?

Think Apple’s brand, IRCTC’s monopoly, or Asian Paints’ distribution.

4. Low Debt, Healthy Margins

Too much debt? Risky. Check:

• Debt-to-equity

• Operating margin

Healthy balance sheets = survival in bad times.

5. Reasonable Valuation

A great company can still be a bad investment if it’s overpriced. Use metrics like:

• P/E ratio

• P/B ratio

Compare with industry peers before jumping in.

6. Honest & Efficient Management

Check if management delivers on promises, handles capital well, and doesn’t dilute shareholder value.

A good business in the hands of bad leadership? Dangerous.

7. Long-Term Vision

Don’t chase quick profits. Ask

Will this company still grow and lead 10 years from now?

Bonus Rule: Never Buy Blindly

Just because it’s trending doesn’t mean it’s worth it.

Research first. Invest later.

Remember

“Price is what you pay. Value is what you get.” -Warren Buffett-