🛌 Sleep Well Investing Post 112: So you want to become a Stock Picker? Becoming a great stock picker requires a mix of mindset shifts, fundamental business knowledge, and financial literacy.
So you want to become a Stock Picker
OP: https://www.linkedin.com/feed/update/urn:li:activity:7313945991827595264/
Becoming a great stock picker requires a mix of mindset shifts, fundamental business knowledge, and financial literacy. Below are the initial steps in that journey... Give it time, Do NOT CHASE until then. You will get ample opportunities if you are young right now...
📍 Step 1: Unlearn (Break Old Habits)
Forget the idea of getting rich quickly.
Ignore market noise and short-term hype.
Stop blindly following "hot tips" from social media or news.
Ditch emotional investing—fear and greed destroy returns.
📍 Step 2: Understand Business
Think like an owner, not a trader.
Study business models—how do they make money?
Identify competitive advantages (moats).
Analyze industry trends and economic cycles.
Understand what is a BAD, GOOD and GREAT business
📍 Step 3: Understand Accounting (The Language of Business)
Read financial statements (Income Statement, Balance Sheet, Cash Flow).
Identify profitability (Margins, ROE, ROIC).
Evaluate financial health (Debt levels, Free Cash Flow).
Look beyond earnings—cash flow is king!
Once you master these, you’ll start seeing the stock market differently—not as a casino but as a marketplace of businesses. Would you like help diving into specific stock analysis methods?
Previous 🛌 Sleep Well Investing Post 111: https://www.linkedin.com/pulse/investors-now-time-lean-chandan-maloo-x1zfc/?trackingId=ixE1QjgnQ3yG8Ija6qEFmw%3D%3D
Disclaimer: This content is provided for educational and informational purposes only and does not constitute an offer, recommendation, or solicitation to buy or sell any securities, or to engage in any investment strategy or advisory service. The views expressed are those of the individual contributor as of the date indicated and are based on information available at that time. These views are subject to change without notice and may not reflect those of SecDiver or SleepWellInvesting. Market conditions, economic factors, and personal financial situations may change, and SecDiver / SleepWellInvesting assumes no obligation to update any information presented. Always conduct your own research or consult with a qualified financial advisor before making investment decisions.
