I'm 19 and have been investing since I got a job at 16. Over the last few years my portfolio has done well and is currently up a bit over 100%. However, while I don't think it's all luck I do wonder whether I'm evaluating stocks as thoroughly as I should be.
Typically, before I invest in a company I must fully understand how it makes money. I figure this out through their website, online, or by reading the business section of their 10K. Then I look at their P/E and compare it to other companies in their sector and see if it's justified compared to how well they're innovating. Next I'll check out the balance sheet to see the financial health of the company by analyzing whether or not they own more than they owe. Lastly I'll look at the income statement to make sure the company's income and revenue are at least growing steadily, but preferably high-growth. Altogether, this takes maybe an hour or two.
I also look at the price charts to make sure I'm not buying in a bubble or during the middle of a correction just to make sure I'm getting in at a good time. It also may be worth noting that I'm a long-term investor (3-10+ years).
Am I doing what I should be doing, or should I be evaluating other information/spending more time evaluating before buying?
Thanks for any help!
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