Here is the 2-step process I use to buy stocks:
- When a stock is On Sale or changes to On Sale
- When a stock has a 4M score close to 80 or higher
I typically don’t overcomplicate this. A lot of new investors sit on the sidelines analyzing and worrying about buying their first stock. I like to remind myself that businesses are in business to solve problems by selling products and services. On Sale means a financially strong stock but a 4M over 80 provides me more confidence on the strength of the overall business.
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.
Disclaimer: This is not financial advice. You alone have the authority to determine if a stock is suitable for you, and you accept responsibility for any trades you make at your brokerage using the tools provided by us or our partners.