5 Things to Look For in an Investment

Here are five things for investors to look for before buying shares of any business.

Brendan Mathews
Brendan Mathews
Apr 7, 2014 at 12:28PM
Investment Planning

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!