Reader's Inquiry Regarding Financial Analysis of A Listed Company

Two days ago, I received an inquiry from one of my readers.  He is new in stock investment who has asked a very good question on stock investment.  That is, how to evaluate a newly listed company in terms of its financial performance.

As I have highlighted in "Infinite Wealth", I suggest to evaluate the financial performance of any public listed company you are interested in based on its past five years financial data.  How about if a company is listed less than 5 years then.

Well, to me, I will not invest in any public listed company without sufficient information.  If you say you decide to invest in a public listed company based on its business potential, ask yourself on what basis that makes your judgment valid?  Based on market rumors?  Based on your instinct?  Based on what other people are saying?  Based on its brand name?  Accept the fact that even an IPO stock which expresses its splendid future earnings is just a forecast.  What I care is what the public listed company has been doing in the past but not its future forecast.  If a public listed company has been performing well in its business and has been reflecting all these in its financial record.  This is its solid track record and I will not doubt so much about its future.  Any judgement without solid evidence means nothing to me.  I only do based on what I see and understand, but not guessing.

I hope my one of my way on filtering good quality public listed company will help all my readers to have your investment success.

Happy searching.