WHAT ARE MY CRITERIA WHEN INVESTING ?!

WHAT ARE MY CRITERIA WHEN INVESTING ?!

Hello everyone,

In my first post, I talked about my investment journey in crypto and the stock market from the past to the present. I mentioned that the investment instruments I invest in are crypto, Turkish stock market stocks and funds, and the US stock market. Now, let me talk a little bit about how I invest and what I base my investments on.

In the Turkish stock market (BIST), I only invest in companies that pay dividends. My criteria for these companies are that they pay dividends regularly and, if possible, have a dividend yield of over 5%.

Of course, I also consider ratios like Market Value/Book Value and Price/Earnings, which everyone prioritizes, but the ratios I prioritize most for a company are those that indicate the company's debt ratio. I refer to this as the debt-free ratio.

Because one of the main reasons a company goes bankrupt is having too much debt and being unable to repay it. The higher the ratio of a company's profits to its debt—that is, the easier it is for the company to repay its debt relative to its profits—the better the company is in my opinion. For this reason, the higher a company's current ratio, the better it is for that company. If a company's current ratio is high along with its liquidity ratio—that is, if they are at the same level (the ratio we find by subtracting inventory from short-term liabilities)—then I would say it's excellent. If, on top of that, the company can pay its short-term liabilities with just the cash it has on hand, then I would say it is perfect. To put it bluntly, you would have to push such a company into the water yourself to make it fail. When I come across a company with such a strong financial structure that it's too solid to fail, I first look at these ratios, then I check if it has consistently paid dividends in the past. If it meets these criteria, I then start to research the company in depth. What is the company, what does it do, who is the owner, is the owner a good owner, is he honest, etc...

That's all for today's post. In the next post, I'll share my portfolio in the Turkish Stock Exchange with you. I'll share which companies in my portfolio meet the criteria I mentioned earlier, which ones are exceptions, and why I'm investing in those companies.

Stay healthy.