How Much Life Insurance do You Need? 9 Golden Rules of Stock Investing (Rule #1)

3 Simple Steps To Invest In A Good Company Or Business

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1. Debt/Equity Ratio: The company/business should have little or no debt. I prefer to buy companies with a debt/equity ratio of less than 1. 2. Return on Net Worth: The company/business should have a good record of increasing net worth over an 8-10 year period. I prefer to buy companies with a RONW > 8-10% per year. 3. Price/Earnings Ratio: The company/business should be available at a reasonable price.
Source: http://www.investinternals.com/
Tags: debt, equity, ratio