We totally get it - research can be a boring thing! But when it comes to investing, sadly it's vital to making the right decisions. 

If you’re wondering where to even start researching or what to look for, here is a list of things we’ve put together that will help you choose the right stock for you!

1. Collect Company research materials

Review the company's financials. Highlights from financial filings and important financial ratios, these can be found on the companies website or financial news websites. Just start with a simple google search.

2. Get specific

Focus on the following numbers & ratios:

• Revenue: the ‘top line’ amount of money a company brought in during the specified period.

• Net income: the “bottom line” total amount of money a company has made after operating expenses, taxes & depreciation are subtracted from revenue.

• Earnings per share (EPS): earnings divided by the number of shares available to trade. It shows the per-share profitability of a company.

• Price-earnings ratio (P/E): a measure of a stock’s value that tells you how much investors are willing to pay to receive $1 of the company’s current earnings.

• Return on equity (ROE): reveals how much profit a company generates with each dollar shareholders have invested.

3. Do some investigative research

Here are some questions you should try and find answers to:

• How does the company make money?

• Does the company have a competitive advantage?

• Does there seem to be effective management? 

• What could go wrong for this industry/company?

^{Investing involves risk. You aren't guaranteed to make money, and you might lose the money you start with.
Douugh Australia Pty Ltd ABN 76 617 000 138 operates under Douugh Australia Pty Ltd AFS License No. 500063. Although we endeavour to ensure the accuracy of information we provide, we do not accept responsibility of liability for any errors or from any loss from its use. Any information provided is general advice only and has been prepared without considering your objectives, financial situation or needs. We don't provide personalised advice or recommendations. Before making any investment decision you should consider whether it is appropriate for your situation and seek appropriate taxation and legal advice. For more details, see our FSG, Terms of Service and other disclosures.}