If you're new to investing, this is how to assess a business properly #investing

If you’re wanting to research businesses before you invest, start with the basics.

Most trading platforms have analyst research built in, so you can read different opinions and look at the consensus view. This helps you quickly understand the broad expectations for a company.

Then go to the source. Every listed company publishes its financial statements. Look at their profit and loss, balance sheet and cash flow. A healthy business should have assets comfortably larger than its liabilities. You also want to check whether the people running the business have meaningful ownership. When management has skin in the game, their goals are more closely aligned with yours.

Once you’ve chosen a few businesses, set up alerts on your trading app. You’ll be notified of any price-sensitive news so you can decide whether the update strengthens your conviction or signals it may be time to reassess. This reduces the urge to watch your portfolio daily and keeps your focus on the fundamentals.

The key is understanding the business behind the share price, not reacting to every movement.

#finance #investing #australianfinance #wealthplanning #financialadvice

General advice only. Based on Australian regulations.
Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

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Advice Disclaimer || Any advice given by the presenter/s has been prepared without considering your individual objectives, financial situation or needs. So, before you act on the advice you should think about whether the advice suits your objectives, financial situation or needs. If the advice relates to acquiring a financial product you should obtain a copy of the Product Disclosure Statement for that product and consider it before making a decision. This presentation has been prepared by Consortium Private Wealth Pty Ltd (ABN 74 616 250 965) (AFSL 495401). If you require advice which takes into account your objectives, financial situation and needs you should speak to a financial adviser.

Robert Goudie (ASIC Reg 235974), Ashley Rowan (ASIC Reg 433899), Olivia Glare (ASIC Reg 1262290), Rachael Todman (ASIC Reg 1270413) & Amy Lehmann (ASIC Reg 1292710) are Authorised Representatives of Consortium Private Wealth Pty Ltd ABN 74 616 250 965 AFS Licence 495401.