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Ask Yourself 4 Questions Before Buying A Share

Posted By On 3/11/2010 08:08:00 PM Under


One need to plan buying the shaares like one plans the home budget. As a trader always ask following 4 questions before going in for the said big purchase.
The Q's to be asked are as appended below:
(a) Do I understand the business?
(b) Am I comfortable with management?
(c) What is the business worth?
(d) What do I have to pay?

Thus one will realise that once an answer is found to these questions than one need not worry and can straight away go for that big stock buying opportunity. warren Buffet must have had atleast one fof the above question i.e. whether he understands the business or not and that is the reason he never entered in the dot com stocks and thus he was saved from the bubble.

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