Long Term Investors: Reminder that we’re all in this together.

Post is for investors, not traders. Stocks are down for everyone, not just you. Unfortunately, seems like tons of people bought at all time highs from Jan 2021 – Nov 2021, but if you believed in the stock then, there’s no reason why you shouldn’t be buying more right now.

Two key notes to relieve some stress on your unrealized losses:

1. The whole market is down, not specific to a company/industry. Meaning the company itself is most likely doing just fine.

2. Stocks are crashing because companies aren’t meeting (unrealistic) expectations. Happened during Dot Com, happening again, with the safe stocks at least, not speculative. This does not mean they’re bleeding or posting losses. Relax.

Now is the time to see exactly how your favorite stock’s fundamentals are doing.

For those who might not know how to value a stock, this is what I usually check. Not saying my method is the best, but it’s worked for me. Although I don’t guarantee results either, I will tell you it’s way safer than “this stock will rise to the moon bro” suggestions you read here on Reddit.

I use Macrotrends for easy checking.

PS Ratio – should range from 0.5 to 3. Anything under seems fishy, anything over is usually too expensive.

PEG Ratio – anything under 1 is great. I don’t use PE ratio. PEG tells the clearer story.

PB Ratio – should range from 1 to 4.

PFCF – less than 25

Margins – dependent on industry, but net margin should be positive. Rarely invest in negative margins. Compare to competitors.

ROE – greater than 15%

Revenue – Increasing Y-o-Y

Debt to Equity – dependent on industry. But should be no greater than 1 for any stock. Semiconductors, for example, shouldn’t have more than 0.5 in my opinion.

Finally, if the company meets 80% of these, I tend to look at the company’s outlook. Does the future look bright? I don’t ask myself this question until the fundamentals pass.

There’s plenty of good deals popping up already. Don’t be afraid to jump in on a stock.

Last comment, general rule of thumb, stay away from any hype stock. Those are meant to be traded, not a long term investment. At least until they die down in hype which can take years.