Part 9/13:
Investors must avoid becoming overly attached to specific stocks. Treating them as business entities rather than personal friends allows for more objective decision-making.
Focus on Free Cash Flow
A company’s ability to generate free cash flow is a vital indicator of its financial health. A strong balance sheet, with little debt and significant cash reserves, provides freedom and flexibility.
Beware of Debt
Debt is often a deterrent for investment. Companies burdened with high debt levels can be less adept at delivering returns for investors.
Ignore the Concept of “All-Time Highs”
Whether a stock or the market is at an all-time high should not dictate investment decisions. Focus on long-term strategies and dollar-cost averaging.