Let’s finally talk about researching companies. Here’s a step by step guide.
Step 1️⃣: Choose a stock to analyze 📈
As you learned in the last lesson, one way is to pick a company you already interact with, like Apple! 💡
Step 2️⃣: Gather financial data 💰
You can find all of a company’s key financial numbers on their stock page on Bloom! 🌹
Step 3️⃣ : Analyze the financial data 📊
How much money is the company making? Are they profitable? Are they growing? 🤔
Each number on Bloom has a description of what it means, and our later lessons explain these numbers in detail! 🎉
Step 4️⃣ : Evaluate the company’s management and industry position 💼
Look up leadership. Bad leadership can affect long-term growth. 🫂
Who are the company’s competitors? 🥊
Step 5️⃣ : Make an investment decision 💸
If you think the company has good financials, strong leadership, and growth potential in its industry, then it might be a good investment! Otherwise, maybe not. 🤔
Test your knowledge
What is the first step to conducting fundamental analysis?
Choose an option
What is the easiest way to find financial data for a company?
Choose an option
What should you research in addition to financial data?