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Example of Good Stock Pick

I'll show you my example of good stock pick.

Since key to profit in stock market is by having good forecast, I used historical data for basic guideline.

No doubt it is best to consider historical stock performance as long as possible. But 5, 10 and 15-years timeline is good enough, as long as it has encounter the corrections or downturn within the period.

For example,

Stock ABC123

Good Stock Pick


The above table give some overview on how you should calculate the key financial ratios.

Though it has negative growth rate within 1999-2001, the stock still be giving you return of 12% p.a (assuming the P/E is remain the same, will discussed later).

It is just as an example that you be targeting 12% p.a return using 12-years historical data, supported by consistent 12% ROE throughout the period.

If you notice, you will be making an extra income through dividend as well, which continually be giving 20% growth in dividend too!

However, you might need to fine-tuning your investment decision before you actually jump into it.

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