Buying a stock is a 2-step process:
- When a stock is On Sale or changes to On Sale
- When a stock has a 4M score close to 80 or higher
Don’t overcomplicate this. A lot of new investors sit on the sidelines analyzing and worrying about buying their first stock. You have to remind yourself that businesses are in business to solve problems by selling products and services. On Sale means a good stock but if you complete a 4M score and the score is as close to 80 or higher, that should give you the confidence to buy the stock.
Remember the 4Ms:
- MOS: The business continues to increase profits.
- Meaning: The business has multiple scalable revenue streams.
- Moat: The business has a strong competitive advantage against other companies in the same sector and industry.
- Management: The business is led by a CEO with a track record of building businesses and increasing share prices.
Note: This is not financial advice. Make sure you buy stocks that align with your own personal investment goals.