Learn to evaluate whether a stock is fairly priced.
Before you look at a chart, a balance sheet or a valuation model, there is one step that has to come first.
Once you have figured out what a company actually does—what product they sell, what problem they solve, and who buys it—the next, very immediate question is unavoidable: How much money are they making right now?
By now, you have likely grasped the basics: you know what a company makes, you understand its current earnings, and you’ve looked at the price tag to see if it’s a bargain.