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Probably an infinite amount of answers to this question.
There is ironically no specific right or wrong, just some guides that may or may not work depending on your temperament, objectives, time horizon, market conditions, etc.
In terms of some tried and true formulas, look at companies with PE ratios that make sense, plan on buying a company that you can understand and see long term value higher than the current rates.
This is typical for long term investing however you want to know where the overall market is to make sure you're not buying in a heated market.
It's so much work that people, including myself, spend their life involved with the industry and still never have an exact answer. Have fun!
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