Investors are piling into ETFs, as they're told it's a quick, easy, and low-cost way to diversify, which is true. And historically has provided excellent returns. Although as the gap between the winners and losers grows, this trend is also being challenged. Only 29 percent of the companies in the ASX 300 have achieved a positive share price return for the last 6 months! For an annualised LOSS of 24 percent!
So how do you give yourself the best chance of finding companies that stack up?
There is no silver bullet, no magic financial ratio, or trading system. RESEARCH is critical, and a lot of it! Investors should be looking for the following:
Robust business model
Well defined outlook
Minimal industry and macroeconomic headwinds