3 Ingredients for Massively Successful Stocks
Thousands of companies are publicly traded, which can make investing somewhat like finding a "needle in a haystack." According to finance professor Hendrik Bessembinder, the stock market's historical gains have come from just 4% of stocks traded. In other words, you need to find the "winners" if you want to have investing success. Nothing in investing is "fool-proof," but here are three ingredients that some of history's biggest winners have.
According to research by Morgan Stanley, 74% of a stock's long-term (10 years or more) total returns are driven by revenue growth. It may seem obvious in hindsight, but the more a company grows, the more it will be worth.
Investors want to be looking for companies that can grow revenue consistently for a long time. History is filled with companies that went through short periods of growth but were eventually disrupted by competitors, failed to execute, or had the company's core business become obsolete.
Source Fool.com
