Selecting winning shares

Precis of MoneyWeek article by Tom Bulford.

Basic key: successful companies make successful shares (OK, I know you guys are going to complain about valuation):

  • good product
  • lack of competitors
  • growth prospects. recurrent income can be good
  • profitability
  • reinvestment opportunity (although this seems like a rehash of “growth prospects”)
  • good management
  • indebtedness
  • company size.  risk is not necessarily a function of size. big companies often struggle at sales growth, relatively low profit margins, and fierce competition over a finite market
  • investor patience

About mcturra2000

Computer programmer living in Scotland.
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