3 Simple Steps To Invest In A Good Company Or Business
Dilip Lillaney of diliplillaney blog is a specialist blogger writing on the possibilities of investing on various companies. His posts are very short and sweet but, able to pass all the required core information to readers. Most of us facing difficulties to give clear ideas using few lines but Dilip is a clear winner on that.
This guest post from Dilip is a best example from Dilip on how we can pass enough ideas to readers by few lines. In this guest post, he is advising '3 Simple Steps to Invest in a Good Company/Business'. Have a look.
1. Debt/Equity Ratio
The company/business should have little or no debt. I prefer to buy companies with a debt/equity ratio of less than 1.
2. Return on Net Worth
The company/business should have a good record of increasing net worth over an 8-10 year period. I prefer to buy companies with a RONW > 8-10% per year.
3. Price/Earnings Ratio
The company/business should be available at a reasonable price. I prefer to buy companies at a low P/E ratio.
My thanks to Mr. Dilip for this guest post.
6 Creative Comments are Rare Specious. Try One::
This is great advice! In this economic downturn, everyone is really in need of solid investment tips. I am very knowledgeable about business and have an MBA, but still like to hear others' investment strategies and recommendations. I really could use investment advice that would positively impact my financial portfolio.
nice post, very useful information.
Thanks
thanks for the positive feedback joker n anicam!
Regards,
Dilip Lillaney.
My best wishes to Joker. Also, I am glad to see Dilip, the one who wrote this guest post for TMM, visited and commented.
Hi Dilip these 3 steps are a nice way to start but I feel there a large no. of other parameters also to consider for value investing. Personally I like to look at the ROIC(return on invested capital) year on year growth for more than 6 years, The BVPS growth rate also is a necessary parameter. What are your views about them?
Dilip is a special writer. He expose thing with little words. I am happy to see your comment here.
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