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Don’t buy that stock! Until you answer these 3 questions
By The Fifth Person  •  May 19, 2016
Figuring out a stock to buy – according to legendary investor Peter Lynch – should take at least as much time as you’d take to decide what refrigerator you should buy. The thing is, few people do. Last week, we talked about three questions you should ask yourself before you buy an asset – whether it’s a stock or a beach house or a fridge. Those questions are a good place to start. But when you’re buying a stock, there are a few more questions to ask before you begin to dig more deeply. The wrong answer to any one of these questions is a sign you should look elsewhere.

1. Do I understand how this company makes money?

Lots of companies make a lot of money doing very complicated things. And that’s good for them. But if you can’t explain what a company does, and how it makes money ......
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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