How I Pick Stocks to Invest In

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How do i pick stocks today i’m going to share with you guys five things five is the biggest thing that i truly look for what i’m trying to find a stock to actually invest it and when i’m trying to decipher i should take this stock these are the five biggest things there’s so many different things i take into account guys now if you want more info on this there’s

My book here it’s linked in that description that goes through my full stock market strategy on how i pick a stock but i want to do a video that’s like the best way i could in a 10 or 15 minute video explained how exactly i pick stocks and one of the biggest factors i look for guys so i hope you enjoyed this video today hit a thumbs up if you do and let’s get right

Into this so first thing in all these are equally as important so just because i mentioned this first one doesn’t mean it’s more important than the last one we’re gonna go through five different ones they’re all super important they’re all super important at the end of the day number one is a strong brand now this is especially true if it’s business-to-consumer so

There’s a few different types of businesses right there’s business the government says businesses selling to the government so think of like you know someone making military aircrafts that’s a business a government a business then you’ve got business-to-business which would be something like my real estate business right where i’m selling my services to a realtor

In hopes that they can make extra money on that or help their business out that’s business to business and there’s business to consumer which is think of going to your local grocery store right and there’s a ton of bag of chips there those chip companies are trying to sell to you your consumer so that’s business to consumer and those are really the three different

Types of businesses out there so when i look for strong brand i’m really thinking like business to consumer that’s especially true but even business-to-business a strong brand is also very vital now just because someone has a strong brand that doesn’t mean the whole company is great right but a strong brain can get you through a lot of stuff it can get you through

A lot of negativity and whatnot just because you have a strong brand reputation and just being the biggest doesn’t mean you have the best brands so just because walmart is the biggest retailer in the world right doesn’t mean that brand is necessarily stronger than some retailer that has you know a super great reputation right firms or whatever for treating customers

Really great so just because walmart’s the biggest brand does not mean they’re the strongest brand so i want to make sure that’s very clear but also you know the size of the brand does matter in the end of the day because the bigger you are generally speaking that means you have a stronger and stronger brand it just doesn’t mean just because you’re the biggest you

Have the strongest so let’s look at on all these i want to kind of like explore like the companies i don last month for socks i’m buying right so gopro that’s the first one strong brand absolutely in the in the camera space or action camera space very strong brand that they’re the leaders in action camera those strongest brand there and in cameras in general they’re

One of the strongest brand names in there very strong brand name you know you look at wynn resorts my second position the strongest branding when you’re thinking about high-end casino resorts you know the winds winds above everybody there’s a strongest brand name they’re not the biggest that would be las vegas sands but they’re the strongest brand name let’s think

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About google google i mean it gets no stronger than google i mean the search engine its above everybody so when you think you’re in a search something you’re thinking google right and when you think you’re going to you know research something or watch videos you’re going to do it on youtube so they own two of the strongest brand items are both owned by google in

Youtube and the google search engine right and then the last one was michael kors michael kors a very strong brand name in the i guess you could say a accessible luxury game but also they just bought jimmy choo who has the premier strong brand name pretty much in high heels and anything you know really expensive shoes for women mostly so very strong brand names

It’s something i value extremely high guys especially if it’s a business to consumer company the second thing i look for is a very strong balance sheet got a very strong balance sheet especially if it’s not a capital intensive business meaning like wind resorts for instance that would be a extremely capital intensive business we’re talking about a resort that’s

Going to cost you know multi billions of dollars so those type of companies will have a little weaker balance sheets but i’m trying to compare them to their peers basically what is that one versus las vegas sands versus mgm ceaser’s and when actually has a phenomenal balance sheet but in most businesses in general i’m going to look at it from a perspective of what

In having cash in long term investments short term investments i’m going to add those numbers up then i’m going to subtract it from basically what they have in short term debt in long term debt and i’m looking for ratios above like a two to one ratio of cash and investments versus the debt the bigger that number is that bigger the gap is there though more comfortable

In my position the better i can sleep at night just because as a long-term investor there’s someone thinking a few years out on a position generally speaking i want to be able to sleep well at night i want to know that if that company comes upon troubles they can make it through and usually a lot of times my companies don’t come in trouble but one that did is go

Pro right go pro absolutely ran into troubles they had mess up after mess up after mess up the only thing that got gopro through the tough times right and into this now they’re in a growth engine and all that other growth piece now the only thing i’ve got gopro through well you can say partly a strong brand name but mainly its capital structure mainly that balance

Sheet when i first invested in gopro they had a phenomenal balance sheet and that is exactly why i do it i would have lost everything on gopro out because they probably would have went bankrupt they probably wouldn’t have been able to take those losses they took but they could because they had basically no debt on the balance sheet and they had ridiculous amounts

Of cash and that is why i do it guys because you never know when your company will just have that luck or something will happen and that company will struggle and come upon bad times guys at the end of the day you never know when that can happen and you know i’ve been investing in great balance sheet companies all my way through and never really had a company

Struggle in a big way intel gopro and it makes me so happy that i pay attention to balance sheet because if i didn’t i would have been screwed guys i would have been absolutely done number three number three i like companies that are founder led or they have a ceo who has basically woken up the company so basically i love companies that are founder led so you

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Think about gopro obviously led by the founder he hasn’t done the best job in the world but he’s helped you know save the company i guess you can say i think the founders can save a company better when resorts do they have one of the best ceos ever in my opinion steve when you look at google the founders still very involved with google i mean they have different

Positions they don’t call themselves the ceo and stuff but they’re still extremely involved in mape hired a ton of brilliant people over at google michael kors obviously still a founder led company so those are type of companies i really like or a situation where a company was kind of a dead company and then some new guy randomly comes in and he has proven that

He could get that company into high growth mode and i mean with that specific company not like he had success at some other company and then he coming in and maybe all a successor this one i like somebody that’s proven that they can get that company to grow in a big way so something like a cirrus logic that i love right with jason road leading that company that

Company with a dead company was a $5 stock he took over that company and now it’s a fifty something dollar stock and the revenues have gone up you know hundreds of percent the profits have gone up thousands of percent since he took over a ceo of that company so those are type of companies i really like founder led or ceo situation where that one has proven proven

Throughout the years that they can get massive growth in that company and then they are almost like a founder of that company because the company with a dead company and they brought it back to life they’ve revived it guys so i definitely look for that that’s a big thing with me number four number four is i like growing revenues of over 10 percent i’m i like i’m a

Value investor but i’m a growth value investor i like companies that have good really solid growth going so at least ten percent growth and it doesn’t mean every time an investment company it has to have that but it’s definitely something i value in the majority of investment i invest in have revenue growth of 10 plus percent we think about gopro absolutely they’re

Growing i mean revenues grew what thirty four percent last quarter we think about wind resorts they’re growing revenues right now by thirty forty percent right now we think about google they’re growing revenues by about 20 percent michael kors which is our last month’s video is the only one that’s not growing revenues at they’re basically revenues are going down a

Bit actually right now so it doesn’t mean i’ll never invest in a company that’s not growing over ten percent but the majority the time guys i’m looking for companies that are growing beneath 10 plus percent or expect to grow revenues 10 plus percent and by the way because the jimmy choo acquisition michael kors will end up actually growing refusion more than ten

Percent unless their whole rest of their business falters or something like that guys so that’s absolutely something i definitely value and the fifth thing i like to look for is i like to look at a company and look out and see say what is their key if their stock price stayed the same and their earnings went up to this amount what would their p/e ratio would be

Two years from now and i really like companies that i feel will have a p/e under 15 two years from now and a lot of that comes down to being a businessman at them today or being a businesswoman right it comes down to making business decisions calculated things thinking okay where is this industry going over the next few years the company’s product for a pipeline or

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Service pipeline where is that going over the next few years what is going on with these competitors are there any competitors going to falter what’s the competitive landscape all this stuff has to be taking an account in it’s a business decision at the end of the day and i know a lot of people hate that because it’s not like a quantifiable thing it’s not like oh i

Look for you know a cash ratio and versus debt and all this like the balance sheet this is business decisions this has been a business man business woman and that’s a big part of being a great investor warren buffett one of the greatest if not the greatest investor ever he’s not the greatest investor ever he’s the greatest businessman ever there’s a difference guys

There’s a difference that’s a being a businessman he’s made massive amounts of business decisions on companies that have gotten him to make great returns on his money over time and become one of the richest men ever in history guys so i’m looking out in but think about those companies i’m invested in currently that were on last month’s episode right gopro absolutely

I expect them to have a p/e under 15 if the stock price stayed exactly where it is right now which is around 10 bucks absolutely their stock price will probably go up and will probably go to a higher p just because growth company wind resorts up the stock price stayed the same based upon where their earnings are going they should be well under 15 two years from now

And but of course their stock price will probably go up google same exact reason i mean if you look at a forward basis google’s around a 22 or 23 rate now rate as the following year they should easily be under 1/5 if their stock price stayed the same price and the micro cores right now has a forty of like ten so they’re already under it not even not even counting

In when the jimmy choo acquisition comes in and how much that will add to earnings and all those kinds of things guys so those are really some five of the biggest factors i look for when i am picking a stock guys once again check out my book it is linked in that description it goes through all these details more than i could do in a video because i actually had time

To sit down and write a book and you know think about all this and now i’m just speaking from you know my mind off of here guys so i hope this was fully easy-to-understand for you guys on those are the five biggest factors i look for more than that but that’s the main five that when i make an investment decision one thing about investing in stock those are the five

I’m taking into account when i’m reading those annual reports when i’m reading those ten case when i’m reading those ten cues when i’m going over those conference calls when i’m listening those investor presentations when i’m doing all the real work those are the five biggest things that i’m thinking about as i make that investment or not make that investment guys

I hope you enjoyed this leave it a thumbs up if you don’t enjoy today if you just came across this channel you may want to subscribe we talk personal finance in the channel we talk entrepreneurship i’m an actual business owner i give away so many business tips we talk stock market investing more than anything guys thank you so much for joining me today and have a great day hey

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How I Pick Stocks to Invest In By Financial Education

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