Business > Numbers
A reminder to myself that investing in a stock means investing in that company’s business model.
Financial ratios are not everything. They can be manipulated to paint a rosier picture.
Conversely, they can also look worse than reality if an unforeseen event happens. Like a global pandemic for example.
Without truly understanding how a company operates and earns revenue, it’s easy to be swayed by the numbers of the day. It might even cause us to sell to early or buy too late because we couldn’t see the opportunity.
So, before you buy a stock… Please understand the business model.
You may stumble upon a fantastic opportunity that short term traders cannot see.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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