One Up On Wall Street: part 2 : point to remember

In this article, we see part 2 of one up on wall street book. In this part 2, you have to remember the following point from the one up on wall street book part 2.

There is the end of Part 2 of this book, so from this book, you have to remember some points, they are as follows. (One Up On Wall Street part 2: point to remember)

First of all, you have identified the nature of the company, after that, you have to know why are you buying this stock.
After this, you have to put this stock in the above-mentioned category, which helps you to identify the purpose of that stock.
So those companies are big in size, that company is not easy to grow very fast, and those companies are in small size they are grown in very fast and become the multi-bagger.
To see the small and profitable company and they can replicate his concept in another place also, and buy that stock. (One Up On Wall Street: part 2: point to remember)
So stay away from the hot stock of hot industries (at present time is Tesla motor stock in the automobile industry) and which company do diversification then stay away from that also.
Don’t buy the IPO and wait for that stock to do good after IPO and then buy that stock, there is also potential present in that stock.
Whenever you work, you know more about the industry than any other professional investor, and you can identify that stock as early as another professional investor. (One Up On Wall Street: part 2 : point to remember)
If any expert in some field, so you can take a tip from him and don’t make the mistake to ask another field of another field expert.
Dull company and fancy name company stock is always better than the good name company stocks.
So those stock is moderate, which give the 20-25 % growth and 30% growth is ideal growth of that industry.
So you have to see the niche company. if you see a turnaround for those who perform very bad then see how much debt is present in that company. and which type of debt is present, type of debt is matters.
if the company doesn’t have debt then this type of company is never going broke. So you can make maximum money in a turnaround company. (One Up On Wall Street: part 2: point to remember)
So P/E ratio is important if you buy a wonderful company and their performance also wonderful, but you pay the maximum price for that stock is worthless of their wonderful performance. So company progress you have to monitor and recheck the story regularly.
Insider buying is good and company share buyback is also good for that company. and institutional ownership is minimum then also is a good sign.
See dividend record and what happens to earn and dividend in previous recession time. The dividend is given or not.
And stay patient, you are checking regularly stock that means stock not increase.
If you have doubt about buying now or later then buy later that stock.
If you buy stock on the basis of P/B ratio and book value ratio, then check for that is there real book value or not. most of the time the book value is not real. (One Up On Wall Street: part 2: point to remember)
So spend as much as time for stock that much spend you spend on buying refrigerator or air-conditioner.