In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser and Motley Fool Stock Advisor analyst Brendan Mathews take a question from a reader who asks: "I am a brand-new investor in my mid-20s, and I have NO IDEA what to really look for when investing. What are the 5 most important things (according to you) to look for when picking a company to back with my money?"
Brendan suggests adopting a business owner's mind-set and lists his five key common-sense factors to consider, including circle of competence, management, business quality, earnings sustainability, and valuation. Jason weighs in to emphasize the importance of long-term holding and continually learning and improving your investment process. Both Jason and Brendan agree that starting to invest in your mid-20s is awesome!
Three stocks to own for the rest of your life
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has allowed us to reveal "The Motley Fool's 3 Stocks to Own Forever." These picks are free today! Just click here now to uncover the three companies we love.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.