Investing in stocks is a good way to grow wealth for the long haul, and while there is some risk involved in buying stocks, doing your research can help you make smart decisions for your portfolio. But what if you are new to investing and are not sure which stocks to start with?
You may be inclined to simply buy stocks you have heard of, and while that is a reasonable starting point on the road to investing, you may want to dig a little deeper to determine which companies are ultimately worthy of your money. Whether you are new to investing or have been doing it for years, you must answer these fundamental questions before adding a stock to your portfolio.
1. How does the company make money?
Sometimes, a company’s primary revenue stream is pretty obvious. For example, if you are buying stocks of Haidilao International Holding Ltd (HKG:6862),...