How Do You Research Your Investments?
I am curious as to how Fools research and do their due diligence. While talking with a friend the other day it struck me how seemingly inefficient it can be to successfully research a company and become well-versed in its operations. This undoubtedly changes given the type of industry a company belongs to; the complexity of a life sciences company such as GenOn (NYSE: GEN) or how the newest NVIDIA (NASDAQ: NVDA) GPU improves upon the previous generation will be a little more difficult to grasp.
It seems to me like most investors travel to different websites, read tons of articles, dig through financials, etc. That’s how it should work, but it can be quite time consuming.
So, as part of my survey, here’s a series of questions you could think about and answer. Answer one, all, or just reply with a generalized comment about how you go about researching a company.
1. How much time do you spend researching stocks?
2. How many different websites do you consult?
3. What website(s) do you use?
4. How important is a company’s balance sheet to your decision for an investment? (Be honest here, even if you have no idea how to read financials.)
5. If you look into a company’s balance sheet, what website/program do you use? Is it the most time consuming part of your research?
6. What 3-5 metrics do you consider most important?
Any other comments welcome.