Invest
4 key ratios I use to unearth great companies to invest in
By The Fifth Person  •  October 27, 2020
When I started investing 10 years ago, I can remember vividly how confused I was when it came to analysing a company’s financial statements. There are so many ratios out there and I was not sure which ones I should use. In the end, I just used all of them for my screening and analysis, and it was confusing looking at everything. After many years of investing, I realized that you don’t have to use all the ratios and some of the ratios have overlapping uses. I am a firm believer of the Pareto principle which means that 80% of the results comes from 20% of the causes. So, I decided to ‘Marie Kondo’ my financial screening template and zoom in on the ratios that are important to yield better results. I put a heavy weight on these four ratios. By using them, you can sniff out good companies and...
Read the full article
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.
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance