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.