3 key points to select a stock

So you've finally decided to start investing. You already know that a low P/E ratio is generally better than a high P/E ratio, that a company with a lot of cash on its balance sheet is superior to one burdened with debt, and that analysts' recommendations should always be taken with a grain of salt. And you know the cardinal rule of the smart investor: A portfolio should be diversified across multiple sectors.

Decide what you want your portfolio to achieve, and stick with it.

Pick an industry that interests you, and explore the news and trends that drive it from day to day.

Identify the company or companies that lead the industry and zero in on the numbers.