
1 Price is the most important factor to use in relation to value. 2 Try to establish the value of the company. Remember that a share of stock represents a part of a business and is not just a piece of paper. 3 Use book value as a starting point to try and establish the value of the enterprise. Be sure that debt does not equal 100% of the equity (capital and surplus for the common stock). 4 Have patience. Stocks don't go up immediately. 5 Don't buy on tips or for a quick move. Let the professionals do that, if they can. Don't sell on bad news.
This article was originally published on June 03, 2021.