What can I look for to know what a good stock it?

To determine if a stock is a good long-term investment, consider the following key characteristics: 1. **Consistent Growth**: Look for companies with a proven track record of consistent earnings growth, even in slower economic times. This indicates resilience and the ability to perform well in various market conditions. 2. **Low Debt and Strong Balance Sheet**: A strong balance sheet with low debt levels provides a company with financial flexibility and stability, which are crucial for long-term growth. 3. **Innovation and Competitive Advantage**: Companies with a significant innovation edge or a large "moat" that keeps competitors at bay are more likely to maintain their market position and sustain growth over time. 4. **High Insider Ownership**: Significant ownership of stock by key executives ensures that their interests align with those of shareholders, promoting better management decisions. 5. **Positive Earnings Trends**: A good long-term investment is often characterized by positive quarterly earnings trends, which can lead to more predictable and stable stock performance. 6. **Robust Management Team**: Effective management is critical for driving long-term growth and profitability. Look for companies with experienced and successful management teams. 7. **Diversified Revenue Streams**: Companies with diversified revenue streams tend to have more consistent earnings reports and less volatile stock prices, which are desirable for long-term investments. 8. **Positive Market Sentiment**: While not a direct characteristic of a stock, positive market sentiment can indicate a stock's potential for long-term growth. This is often reflected in factors like a high return on equity, which can attract investors and drive stock prices up. 9. **Historical Performance**: While past performance is not indicative of future results, reviewing a company's historical stock performance can give insights into its overall market presence and investor confidence in the company. By considering these characteristics, you can make more informed decisions when evaluating stocks for potential long-term investments.