Which stock can I buy for the next 7 years?

 Well I assume the perspective of buying a stock is long-term. Everybody is eager to know the stocks and buy some quantity. It's not easy to pick out the stocks on the basis of tips & recommendation. Everyone following the same algorithm of picking the stock , it can be tips of news channel , most viewed YouTube channel, telegram etc.

Try to educate yourself on basics of fundamentals and technicals of charts. Take the the responsibility of your hard earned money while investing. Following I mention some points while picking valuable stock.

Fundamental —:

  1. P/E ratio. - Compare within same industry peers. Don't rely on single ratio because it can be manipulated with the malpractices in management.
  2. P/B ratio. - when P/B < 1 , it is undervalued stock. You can hold the stock until P/B = 1.
  3. D/E ratio - select the stock, D/E < 1 i.e choose the stock which have better ratio among the peers.
  4. Net PNL. - Look for atleast 5 years of net pnl where revenue and profit are rising continuously.

Technical — :

While taking entry in stock consider all fundamental points . Take entry on monthly timeframe candlestick chart, when MACD crosses Signal line and stock closes above 5 EMA.

Tips —:

I didn't mention stoploss as our view is long-term and don't put all your money in a single stock.

Check your portfolio once in every 3 month. As normally condition looks good but malpractices can be happen in inside the company.

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