1️⃣ Step 1: Define your investment goals and risk tolerance 🎯
Knowing your risk level is important since it helps you balance your expectations and rules out some stocks.
2️⃣ Step 2: Choose stocks to analyze 📈
You can’t analyze everything, so you just have to start somewhere.
Many investors start with companies they interact with daily!
3️⃣ Step 3: Gather financial data 💰
The Bloom app is a perfect place to start. Most of the stats in the previous lesson are right on Bloom!
You can also google for company financial statements.
4️⃣ Step 4: Analyze the financial data 📊Time to determine intrinsic value!
Look for trends, consider competitors, think about inflation and identify how profitable the company actually is 🤔
You can also google intrinsic value calculator.
5️⃣ Step 5: Evaluate the company’s management and industry position 💼
Not all press is good. Look up leadership. Do customers like them?
Does the team like them? Bad leadership affects long term growth.
6️⃣ Step 6: Make an investment decision 💸
Based on your analysis, decide whether the company is undervalued, overvalued, or fairly valued
Always consider your investment goals and risk tolerance before making a decision to buy or sell and never invest more than you are okay with losing 🤑
