Asked by Anonymous
Asked on 04 Dec 2018
I want to know about how people of Singapore think about the stock market as I am writing blog .
It differs a bit between a value investor compared to technical investor, the questions themselves also differs quite a bit from person to person. These are the nine question the Oracle, who focuses on fundamentals, would ask before considering the company:
Does the business have an identifiable consumer monopoly?
Are the earnings of the company strong and showing an upward trend?
Is the company conservatively financed?
Does the business consistently earn high rate of return on shareholders’ equity?
Does the business get to retain its earnings?
How much does the business spend on maintaining current operations?
Is the company free to invest retained earnings in new business opportunities, expansion of operations, or share repurchases? How good a job does the management do at this?
Is the company free to adjust prices to inflation?
Will the value added by retained earnings increase the market value of the company?
As per my experience you must check following things before investing in a Singapore company.
Never jump blindly into stock markets
Evaluate your comfort zone in taking on risk.
Draw a personal financial roadmap for sudden ups and downs in your income.
Keep eyes on Fundamental news about the invested stocks
what is the shareholder return in last 5 years
What are the potential returns?
How is this company doing as compared to its peers?
How are the financials of the company?
What are the risks involved?
How strong is the management?