Hi guys, i have been trying to establish a base point for what makes a good company....or more to the point, what financial ratios should i use to narrow my search for good companies to invest in long term. Long term in this case is either 10+ years (held for DRP, compounding returns), or 1-5 + years (growth investing).
Finding this information has been tricky, but i believe i have the basis to start looking at some companies. I'm wondering if those who have experience in this area can cast their eyes over this and sanity check it?
With so much choice (not only within ASX, but international markets) I think having such tight requirements may assist in reducing the sheer number of opportunities to a more manageable amount....but I fear that I might be excluding a few key opportunities in doing so.
Is anyone able to comment on their 'must have' / 'go to' ratios that they use when filtering what companies to research?