- Start thinking about everyday companies you come across with this new framework.
- Visit the company’s website and financial websites online that give you varied insights on the stock like Wikinvest.com and Morningstar
- Learn the basics of reading financial statements. Then, check to see how profitable the companies you're interested in are. Check their debt position. See if they have been growing steadily.
- Never jump into buying stocks in a company unless you've sat down and done your research.
- Stay away from stock tips -- they are merely someone's grandiose theory about getting rich quick or a salesman that is paid to inflate a stock so that the company can raise money by dumping stock on unsuspecting investors.
- Warren Buffet says that it amuses him how high IQ CEO's mindlesly immitate one another. Warren says that he NEVER gets good ideas listening to others.
- While you should invest in companies you know, do not limit yourself to just one or two sectors. Try to research about companies in a variety of sectors and diversify your stock portfolio.