What to look for when Long-term Investing

[NewToTheTrade]

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.

 

[Tysonboss1]

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.

This about sums it up. It takes alot of skill and knowledge to identify each one though.

 

[So_Cynical]

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.

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.

 

[NewToTheTrade]

thanks, help is much appreciated.

 

[McLovin]

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.

 

[MrMomentum]

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.

When you say "trading at a low price" do you mean undervalued or trading below a certain price e.g.$2 ?

 

[So_Cynical]

When you say "trading at a low price" do you mean undervalued or trading below a certain price e.g.$2 ?

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.