Choosing a firm in which to buy stocks can be daunting. They have 100-page annual reports and complicated data and charts, not to mention endless jargon — all in all, investing can seem needlessly complex. And while the experts will spend hours on these complicated things, they say that it’s important not to overlook the basics. Sometimes whether to invest in a firm can hinge on the simplest of questions. But what are the questions? We ask the experts to narrow it down.
It may sound obvious, but you should make sure you understand a company before you invest in it. What does it do and how does it make money? As the veteran investor Warren Buffett says, “Never invest in a business you cannot