What do you look for when you buy stock for the long term?

Discussion in 'Strategy Development' started by timmyz, Jan 10, 2006.

  1. timmyz


    What type of opportunity fits your criteria?
  2. It depends on your definition of long term. But in general, you will benefit from looking first at strong fundamentals. Good EPS (>2), good EPS growth, and relatively low PE. Then, be PATIENT and look for a pullback in price to buy. Every stock, no matter how fundamentally sound, will from time to time pull back for any number of reasons.

    I also suggestion you refrain from stocks that (1) Have warned of future earnings shortfalls, and (2) Any drug companies, as they can be impacted by regulatory issues or FDA announcements.
  3. timmyz


    only thing that doesn't make sense there is that EPS has to be > $2. the absolute number really does not mean much.

    anyone else?

    also, please be more specific.

    what are the EPS and growth rates that suits you?

    how low of a relative P/E is low enough for you?
  4. 1. It means a great deal. I've been at this for years.

    2. You're welcome.
  5. timmyz


    I'm not really asking for people to teach me, I'm asking for people's opinion. Although if someone has something of value to teach I would certainly be interested in hearing it.
  6. nassau


    intially I look for a stock that has just had a large pullback.

    ie nvda when it fell 9-10 area, tasr on drops to 7area or below,
    gm at 18 area wrote puts 17.50 etc
    reverse for shorts..stocks with rallies that are outside times earnings or
    stocks that have false momentum rallies ie cramer or just momentum..
    ie mrvl, amzn, nvda, rimm, rhat, ati, list goes on...

    in closing, you to go long or short you must feel after doing all research that you are happy with the position reguardless..and perpared to have patience and wait...
    long term.... 30-90 days...