3 Simple Steps To Invest In A Good Company Or Business

Dilip Lillaney of diliplillaney blog is a specialist blogger writing on the possibilities of investing on various companies. His posts are very short and sweet but, able to pass all the required core information to readers. Most of us facing difficulties to give clear ideas using few lines but Dilip is a clear winner on that.

This guest post from Dilip is a best example from Dilip on how we can pass enough ideas to readers by few lines. In this guest post, he is advising ‘3 Simple Steps to Invest in a Good Company/Business’. Have a look.

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. I prefer to buy companies at a low P/E ratio.

My thanks to Mr. Dilip for this guest post.