Research is a vital part of been a successful investor in the stock market and Good research is the only research you should be doing. So what is Good Research? Well in my view good research is finding a fact and then verifying it from as many different sources as possible and finding a consensus. Only after this has been achieved can you even try to formulate an opinion or a view. Obviously multiple facts need to be gathered together when researching a company. right from the top of the company starting the the board of directors and the CEO to diving deep in to the financials of the company in its present state and also looking at what analysts are predicting in the future. All these and more factors need to be taken in to consideration before taking the plunge and buying a stock. Research can also throw up some gems of wisdom from more seasoned investors who have been very successful. I love Warren Buffets quote “Be fearful when others are greedy and greedy when others are fearful.” Time and again, the value investor has used this philosophy to pounce on opportunities. So researching you favorite investing guru can be an excellent way to get a Good philosophical grounding in the investing sphere. research has so many different aspects to it and if you enjoy learning and discovering something new you will surly find it not only interesting but enjoyable. If i where to start investing again tomorrow the first thing i would do is research Ratio's which are used in part to build a more bigger picture regarding a companies performance. After all we are all in business to make a profit. learning to work out a PE ratio is a basic tool which every investor should be able to do. Once this has been mastered working out other ratio's should be a lot easier and you are one step further to making you first Investment. Research is a broad spectrum tool and can be applied to everything that is why it is such an important weapon in an investors amoury and been able to do it correctly is vital.
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