Qualities of successful stocks
Women are gaining strongholds in all fields and it is not long when the stock market will be dominated by women. Women have rational thinking and they are known to be masters in multitasking.
What are the qualities that successful stocks of excellent businesses make them apart from other stocks? What separates the good stock from the ordinary stock? The answer is not simple. You should do proper research to find out why particular stocks click in the stock market and why certain stocks do not click. Financial analysis does play an important role but certain other factors are equally important.
A leader is not born he is made. This saying goes well with stocks too. A leader in the market is created mainly be consumers. It is the consumer who holds the key to the lock (share). The market should accept a particular company and its product to survive and sustain competition in this fast moving world.
The first and foremost question to be asked is whether the company’s products and services are needed tomorrow. A company may be a leader in a particular product in the market today but will that product survive tough competition and will it last the next few years. Technology and science is changing before we blink our eyes and so companies should adopt products and services that will not fade away i.e. will sustain any market conditions.
A decade ago who would have ever imagined that cassettes and VCR’s would become extinct and would pave way to DVD’s and CD’s. The television is also seeing a major revolution and the slim TV is gaining importance. PC’s are replaced by LAPTOPS. Companies should have products and services which can adapt to the changing needs of the consumer.
Very strong competitive advantages safeguard strong companies from competitors. A popular trademark,
high cost of entry and heavy manufacturing costs are some reasons why companies stand out during tough times.
Market leadership is one of the greatest factors which determine a companies share in the market. Market leaders are followed by the others in the industry. But don’t only rely only on market leaders. Some companies grow slowly and lose their leadership tag and this brings their share price down. Market leaders have to be prompt in decisions and should not let competitors overtake them, as once strong ground is lost; it is very difficult to get back to number one position.
Although financial status and positions hold the first preference in determining the trait of a company and its shares, there are various other factors like that the ones mentioned above which determine the quality of a companies share. So you should be very careful while picking up stocks of major companies.
