Stock Investing: How to Identify “Red Flags” In Listed Companies

October 23rd, 2011 at 12:48 am

As a value investor, I am a huge fan of Warren Buffett. Following his teachings closely, I have applied elements of his principles into property investment for my valued clients.

I realized that many of my clients, who have vested interests in property investment, are also shareholders of public listed companies, locally and overseas. Hence, this blog entry is to highlight one important criteria in selecting a good company to invest in.

Warren Buffett calls them the “Red Flags”. If any companies show these warning signs (red flags), it serves as an obvious call for us to look deeper into the fundamentals of this stock.