Why would you pick a specific business when investing?

what reason affect your judgment when select the companies you invest next to?

homework reason :)

Answers:
A few real-world (and homework) reason to invest in a pernickety business include the following:

(1) Familiarity. I will usually invest in a company next to which I am used to and will usually avoid companies beside which I am not au fait.

(2) Rank. I will usually invest in a company beside ranks among the largest of its type -- rank by sale, assets, profits, force, etc -- and will usually avoid smaller companies, simply because of the vagueness associated near small size.

(3) Age. I will usually invest in established (i.e. older) companies fairly than newer ones, simply because the more established companies enjoy a track account (history) which can be evaluated.

(4) Trend. I will usually invest in companies whose sale, profits and assets are growing (trending upwards), to some extent than those which are trending flat or downwards.

(5) PE Ratio. I will usually invest in companies next to a low price-earnings ratio, because the price is low relative to the earnings. I will avoid those beside a dignified ratio, since those companies -- even though they may be really great companies -- are too expensive for potential adjectives growth.

(6) Management. I will other invest in companies which hold strong upper guidance -- as measured by my own evaluation and by the "street's" evaluation -- since headship will win out every time. I will avoid companies which hold questionable or poor regulation, because, no concern how strong the company, less-than-stallar organization cannot succeed contained by today's significantly competitive environment.

Other factor which I consider include hand relations (I will not invest in companies next to a history of member of staff or coalition problems), social responsibility (this is too historic today to be ignored), and jurisdiction (where a company is headquartered and does business affects its nouns contained by so frequent different ways).

Hope this help.
I close to to see their chart trends for the final 5 years and read the quarterly reports in relation to demand books etc. During the recent crisis I made an investment and healthy to see 15% profit for 2 months


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