Blog: Do you always avoid all companies with large amounts of debt? - investbullbear

2 people like this.

5 comment(s). Last comment by 3iii 2017-07-21 12:43

stockmanmy

6,977 posts

Posted by stockmanmy > 2017-07-20 11:55 | Report Abuse

now...this I call a good quality investment head.

Focus on quality
On business sense
and on certainty of profits.

VenFx

14,784 posts

Posted by VenFx > 2017-07-20 12:01 | Report Abuse

Debts are always a double edge sword , as long it is manageable in the rite application ... Why Should Stop U from Invest ? (Only for Growth Sector)

stockraider

31,556 posts

Posted by stockraider > 2017-07-20 12:04 | Report Abuse

ALL INVESTORS REMEMBER DO NOT OVERPAY...OR HOLD ON TO OVERVALUE COMPANY LOH...!!
THIS IS THE USUAL MISTAKE OF 3iii..... GOOD QUALITY WITHOUT REFERENCE TO THE PRICE PAY OR CURRENT SHARE PRICE LOH...!!

REMEMBER GOOD INVESTMENT...IT IS RELATIVE TO PRICE U PAY MAH...!!

U CAN HAVE QUALITY...BUT OVERPAY...U HAVE BAD INVESTMENT LOH..!!

U CAN BUY JUNK OR PENNY...BUT GOT IT REALLY CHEAP CHEAP WITH GREAT VALUE....U ALSO GET A GREAT INVESTMENT MAH...!!

gohkimhock

3,030 posts

Posted by gohkimhock > 2017-07-20 13:55 | Report Abuse

as long as the debt does not affect the cash flow, it is acceptable.

3iii

12,917 posts

Posted by 3iii > 2017-07-21 12:43 | Report Abuse

Good investing is about investing in GREAT companies by buying their shares at REASONABLE prices and holding on to them for a LONG time. Great businesses generate high levels of profits or cash flows on the money they invest.

Paying too much for a share can result in disappointing returns. No company, no matter how good, is a buy at any price.

However, there is some evidence that paying what might seem to be a moderately expensive price (slightly more than the suggested maximum) for a QUALITY business can still pay off in the long run. CAVEAT: You have to be prepared to own shares for a very long time, perhaps forever.

Paying the right price is just as important as finding a high-quality and safe company.

Be careful not to be too mean with the price you are prepared to pay for a share. Obviously you want to buy a share as cheaply as possible, but bear in mind that you usually have to pay up for QUALITY. Waiting to buy quality shares for very cheap prices may mean that you end up MISSING out on some very good investments. SOME shares can take years to become cheap and many never do.


Happy Investing. May your investing be as rewarding too.

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