Aha Fundamental Trade Button Motivators

When it comes to pulling the trigger on investments with my hard earned cash I follow what could be conducted the old school conservative methodology. If I'm buying into a company I want to make sure I'm not throwing good money after bad. I want results and I want returns. Of course I check stats like balance sheets and financial reports. Is the company in too much debt? Are they hoarding cash instead of investing in themselves? Too much cash can be as bad as too little. All this paper information is helpful but it won't make me hit that Trade button. After all the pretty paper there is only 1 question I ask myself: Does this company provide a product or service that I will use in ANY economy? If the answer is "no", then I don't care how pretty they are on paper, I'm out. If the answer is "yes" then I'm jumping up and down on that Trade button! Forget pressing it! I follow the great Warren Buffets advice: "Never invest in a business you can't understand". I take it 1 step farther: never invest in a company who's products or services you wouldn't use. Odds are if you don't use the product others won't either. Shop at Target? Home Depot? Use deodorant and soap? Drink soda? Buy into your favorite products. If the bottom fell out of the economy tomorrow what would your family still HAVE to buy to survive? This tried and true (I told you I'm old school) advice has served me well. This methodology is suited for long term investors that intend to hold the stock, reap the dividends, and enjoy the returns. This is for Trade button hitters that are investing in their long term futures not the aggressive speculation of day traders. Regardless of your experience investing, always invest according to your plan and budget. Only press that Trade button when you've answered your own questions. Of course I believe you should smash that button when you know you are investing in products or services you and your family would buy even under the worst financial situations. Those companies will survive economic downturns and they could save your finances. Good luck out there Mooers! Hit that button!