13th Nov 2009 by Gary
While it depends on your investment goals, over the long term you want a company that has proven it can survive and thrive over a period of time, as that shows they know how to manage when times are good and when times are bad. Another factor to look at is their dividends. Have they raised their dividend year-after-year during good and bad times? Have they suspended their dividends? The answers to these questions are important in that it proves their ability to successfully navigate the company and profit in all circumstances. You want to know that because it's best to buy and hold when investing in good stocks, which is proven to be the most profitable way to make money and build wealth. A major thing to look at for a company is also its competitive advantage. How strongly are they positioned in their specific market? How big of a defensive moat have they build which competitors would have a difficult time crossing? That also points to the long-term success of a company, which would benefit the investor.
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