Recommended Reading:
The Five Rules for Successful Stock Investing, Chapter 3
To study the qualities of earning, I tend to look at whether a company is well managed with growth prospect. I sometimes refer to Philip A. Fisher 15 investments points as guide. I check whether a company has worthwhile profit margin? Does the management have the determination to continue to develop products or processes that will still further increase total sales potentials?
Recommended Reading:
Common Stocks and Uncommon Profit, “Fifteen Points to look for in a Common Stock”
