In partnership with

Today’s Headline

📊 Series 7: Understanding Company Fundamentals

^{Day 7: Final Checklist — What to Look For Before Buying Any Stock}

Before I buy any stock today, I always pause for a moment.
And in that moment, I ask myself one question:

“Have I checked everything I need to check?”

This question sounds simple, but it has saved me from bad decisions many times.
It’s easy to get excited about a company.
It’s easy to feel FOMO when you see prices climbing.
And it’s easy to be influenced by hype, friends, or even social media.

But investing is not about excitement.
It’s about discipline and clarity.

That’s why I created a personal checklist—something I follow every time before I buy a stock.
And today, I want to share the same checklist with you.
By the end of this lesson, you’ll know exactly what to look at, what to avoid, and how to make decisions with confidence.

This is the last day of our series, and I want to make sure you walk away with something practical, something actionable, and something that can truly help you become a wiser investor.

Let’s dive in.

If you're looking to grow your portfolio with experienced guidance and institutions you can trust, take a look at Fisher Investments — they’ve built their reputation on aligning strategy with goals, not selling hype.

13 Investment Errors You Should Avoid

Successful investing is often less about making the right moves and more about avoiding the wrong ones. With our guide, 13 Retirement Investment Blunders to Avoid, you can learn ways to steer clear of common errors to help get the most from your $1M+ portfolio—and enjoy the retirement you deserve.

Get your free guide today.

1. Step One: Understand the Business (Not the Stock)

Every stock represents a real business.
That might sound obvious, but most people forget this when they invest.

Before buying, I always ask myself:

Do I understand what this company actually does?

If I can’t explain the business in one or two simple sentences,
I don’t buy it.

Understanding the business helps you:

• Stay confident during market drops

• Recognize if the company is improving or declining

• Know what numbers to focus on

When you understand how money is made, everything else becomes easier.

2. Step Two: Check if the Company Makes Real Money

Once I understand the business, I look at something even more basic:

Is the company making actual profit?

This is one of the most important things to check.

There are companies that are popular but make no money.
There are companies with high revenue but no profit.
There are companies burning cash to grow.

That’s risky.

I look at these simple numbers:

• Revenue growth

• Net profit

• Operating profit

• Cash flow

If revenue is rising, profit is steady, and cash flow is strong,
that’s a healthy sign.

If revenue rises but profit keeps shrinking,
something might be wrong inside.

Money tells the real story.

3. Step Three: Look at the Balance Sheet — Is the Company Strong or Weak?

A company can be profitable but still weak financially.
That’s why I always check the balance sheet.

The balance sheet shows:

• How much debt the company has

• How much cash it holds

• How stable or risky its financial structure is

I look for:

• Low or manageable debt

• High cash reserves

• Strong assets

• Good financial stability

A strong balance sheet is like a solid foundation for a building.
The taller the building, the stronger the foundation must be.

When markets crash, companies with weak balance sheets usually fall first.
Companies with strong balance sheets survive—and often come out stronger.

4. Step Four: Check if the Business Has a Competitive Advantage

Not all companies are the same.
Some companies are ordinary.
Some companies are exceptional.

The exceptional ones usually have a moat—something that protects them from competitors.

It could be:

• Strong brand

• Patents

• High customer loyalty

• Cost advantages

• A unique product

• Network effects

When a company has a moat, it can defend its profits and grow steadily.
When a company has no moat, competitors can easily steal market share.

I always ask:

“What makes this company difficult to copy?”

If nothing comes to mind, that’s a warning sign.

5. Step Five: Check the Management Team

A great company can fail under poor management.
And an average company can rise with strong leadership.

I pay attention to the people running the business.
Their decisions shape the future.

I ask myself:

• Are they honest?

• Are they competent?

• Do they treat shareholders fairly?

• Are they reinvesting money wisely?

• Do they have a history of good decisions?

Good management grows value.
Bad management destroys it.

“Imagine converting your customer calls into revenue-generating assets — discover how Synthflow’s AI-powered WhatsApp & voice agents are being used by fintech firms to scale without hiring more staff.”

Introducing Synthflow Voice AI Agents for WhatsApp Calls

Until now, answering WhatsApp calls with the same speed, consistency, and automation as phones was nearly impossible.

With Synthflow, that changes. Connect your WhatsApp Business account instantly and have every call answered by Voice AI Agents that resolve issues, book appointments, track orders, send follow-ups, and escalate when needed.

24/7 coverage, 200+ integrations, 30+ languages, and enterprise-grade security — all in one platform.

Try It Today

6. Step Six: Check Valuation — Is the Price Fair?

Even the best company can be a bad investment if the price is too high.

That’s why valuation matters.

There are three main things I look at:

• P/E ratio

• Competitors' valuation

• Future cash flow potential

If the price is too high, I wait.
If the price is fair or cheap, I study deeper.

Buying a great company at a fair price is better than buying an average company at a cheap price.

I remind myself:

The stock price is what you pay.
The company value is what you get.

7. Step Seven: Study the Industry Trends

You can buy a good company in a dying industry and still lose money.
That’s why I study the industry too.

I ask:

• Is the industry growing or shrinking?

• Are new technologies disrupting it?

• Are customers changing their habits?

• Are margins improving or falling?

A rising industry gives companies a tailwind.
A shrinking industry pushes everything backwards.

I want to invest where the wind is behind me, not against me.

8. Step Eight: Identify Risks (Not Just Opportunities)

Most new investors love looking at potential gains.
Few take time to look at risks.

But the smartest investors look at risks first.

I always list out:

• Market risks

• Business risks

• Debt risks

• Competition risks

• Regulatory risks

• Technology risks

If the risks are manageable, I continue.
If the risks are huge, I stay away.

A good investor is not someone who avoids risks completely.
A good investor is someone who understands risks clearly.

9. Step Nine: Check Insider Behavior

Sometimes, the people inside the company give clues through their actions.

I look at:

• Are insiders buying shares?

• Are they selling shares aggressively?

• Are founders increasing their stake?

• Are senior leaders leaving the company?

Insiders know the company better than anyone else.
Their moves can reveal confidence—or fear.

I trust actions more than words.

10. Step Ten: Decide If This Stock Fits Your Strategy

Not every good stock is suitable for every investor.

I ask myself:

• Does this stock fit my risk level?

• Does it match my investment time frame?

• Does it align with my goals?

• Will I be comfortable holding it during downturns?

This is the part most people skip.
But it's critical.

A stock might be excellent,
but if it doesn't match your personality or goals,
you won’t hold it long enough to profit from it.

11. Step Eleven: Set Your Entry Strategy

Before buying, I always set my plan.

For example:

• Will I buy all at once?

• Should I buy slowly over weeks?

• Should I wait for a better price?

• Should I buy only if certain conditions happen?

Having an entry plan removes panic.
It keeps me calm.

Investing becomes easier when you have rules.

12. Step Twelve: Know When You Will Sell

Most people know how to buy.
Very few know how to sell.

Before entering any position, I ask myself:

“Under what conditions will I sell this stock?”

Some examples:

• When the business is no longer strong

• When management becomes questionable

• When the stock becomes extremely overvalued

• When the industry is shrinking

• When my initial reason for buying is gone

Selling shouldn’t be emotional.
It should be logical.

By deciding early, I avoid panic selling later.

13. Step Thirteen: Use Emotional Discipline

Even with the best checklist,
you can still make bad decisions if emotions take over.

Fear and greed are powerful.
They can make you buy at the top or sell at the bottom.

So before I buy any stock,
I pause and check my emotions.

I ask:

• Am I buying because of hype?

• Am I rushing?

• Am I impatient?

• Am I afraid of missing out?

If my emotions are loud,
I wait.

Patience is a superpower in the market.

14. The Full Final Checklist (Simple and Clear)

Here is the exact checklist I personally use:

✔ Understand the business

✔ Know how the company makes money

✔ Check revenue and profit

✔ Confirm stable cash flow

✔ Study the balance sheet

✔ Look for low debt and strong cash

✔ Identify competitive advantage

✔ Look for brand, patents, or unique edge

✔ Evaluate management

✔ Check leadership quality

✔ Check valuation

✔ Compare with industry and cash flow

✔ Study industry trends

✔ Make sure the industry is growing

✔ Identify major risks

✔ Understand the downside

✔ Review insider actions

✔ Look for confidence from founders

✔ Fit with your strategy

✔ Match your goals and risk tolerance

✔ Create an entry plan

✔ Decide how you’ll buy

✔ Set selling conditions

✔ Know when you’ll exit logically

✔ Control emotions

✔ Invest with clarity, not fear or greed

This checklist protects me from mistakes.
It keeps me grounded.
And it helps me make decisions that last.: Understanding Company Fundamentals

Final Takeaways

[Live Life Grow Wealth]

🎓 Free Masterclasses to Unlock Your Investment Potential
Take your money skills to the next level with expert-led workshops designed to help you grow smarter and faster.

/https://register.go-leap.com/tadwebinar?am_id=yongheng6172

/https://superinvestorclub.go-leap.com/superinvestorclub-signup?am_id=yongheng2768

/https://register.go-leap.com/membership-tiers?am_id=yongheng1875

Recommendations Section

“Peek into smart money moves — when big players act, you’re in the loop.”

Learn simple, proven ways to grow your money — straight from real investors who walk the talk.

“Hone your investing edge in just 5 minutes — smart, snappy insights to power your portfolio growth.”

“Stay ahead with one expert-picked stock monthly — clear, no jargon, built for growth.”

DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.