Here at The Fifth Person, we use a 4-step formula to analyse all our stock investments.

We call it The Investment Quadrant. As the name suggests, there are four quadrants to The Investment Quadrant – Business, Management, Financials and Valuation.

Before we invest a single dime in any stock, we always run it through The Investment Quadrant to make sure the company passes all our minimum criteria and benchmarks. This way you know that the companies that do pass the test are the some of the best stock investments around and have a high degree of certainty of being profitable in the long run.

Now you may or may not already know about the Quadrant as we’ve mentioned it before from time to time in some of the analyses we share on our site. And since we’re going to use it a lot more in our future analyses, we’re going to describe The Investment Quadrant in …