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What to look for when Long-term Investing

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NewToTheTrade

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Hi, Im new to the forums and new to trading. I was interested to know what you guys look for when investing long-term, by long term I mean 5+ years.
 
NewToTheTrade said:
Hi, Im new to the forums and new to trading. I was interested to know what you guys look for when investing long-term, by long term I mean 5+ years.
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This about sums it up. It takes alot of skill and knowledge to identify each one though.

 
Last edited by a moderator:
NewToTheTrade said:
Hi, Im new to the forums and new to trading. I was interested to know what you guys look for when investing long-term, by long term I mean 5+ years.
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A good business in a good industry with manageable debt, trading at a low price....some potential to keep on doing what they are already doing and potential to grow.
 
For the business: Good balance sheet (ratio analysis), good margins, low revenue concentration, high return on equity, low CAPEX, strong free cash flow. Ideally I also like companies that have a high % of recurring revenue. And most importantly, a business I can understand.

For the share: Margin of safety.
 
So_Cynical said:
A good business in a good industry with manageable debt, trading at a low price....some potential to keep on doing what they are already doing and potential to grow.
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When you say "trading at a low price" do you mean undervalued or trading below a certain price e.g.$2 ?
 
MrMomentum said:
When you say "trading at a low price" do you mean undervalued or trading below a certain price e.g.$2 ?
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I mean...trading at a low price when compared to a high price, stocks trade over ranges that change over time and some successful investors use that time to their advantage.
 
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