The most important thing for an investor is that he/she should know which stock to buy and which stock not to buy. For buying a stock for long term one should keep these factors in mind.
1)The stock should be quality stock and not momentum stock.
2)The sector to which the stock belongs should have growth and good future prospects.
3)The stock should be less prone to currency fluctuations.
4)P/E ratio of the stock should be as low as possible for mid caps it should be b/w 5 to 10 and for large caps it should be 10-15.
5)Avoid small caps for long term investment.
6)Check company financials thoroughly.
7)Check if the stock is held with any mutual fund ,it is considered good for stock.
1)The stock should be quality stock and not momentum stock.
2)The sector to which the stock belongs should have growth and good future prospects.
3)The stock should be less prone to currency fluctuations.
4)P/E ratio of the stock should be as low as possible for mid caps it should be b/w 5 to 10 and for large caps it should be 10-15.
5)Avoid small caps for long term investment.
6)Check company financials thoroughly.
7)Check if the stock is held with any mutual fund ,it is considered good for stock.
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