Motley fool: Million dollar portfolio

[lightweight99]

I've just started this book and thus far it is very good. Before I get any deeper though, I wanted to get some advice on the book, is it a good read for a beginner? is it pointing me in the right direction?

Also, it goes on about researching companies alot, is there a certain site some of you go to to get such info? CEO background, BOD, who they are and there background, original founder, p/e, compensation, track records.

I know google will bring up a lot, thought there might be a better all in one site.

Thanks!

 

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[GreenHouses]

I see you live in the US so if you're wanting to research companies listed in the US, try Valueline. I use something similar here in Australia.

Then there's the website of the company you're investigating... there's typically an investor information section.

I haven't read the book so I can't comment on it.

However if you're looking to invest based on fundamentals, then researching what the company does, how it makes its money, who is running the company etc is helpful. Also have a good look at the company's financials. Not just for the most recent year, but over at least 5-10 years if you can.

What are the trends?
Is the company growing in terms of profits and revenues?
Is it consistently profitable?
How well does it use shareholder's money?
How strong is the balance sheet?
How much debt do they have?
Is shareholder's equity consistently growing?
What's their growth strategy?

Once you've read widely, choose / develop a strategy (such as a set of rules) that makes sense to you.