With all the information available via the internet it is sometimes hard to summarize what are the most important metrics to take an investment decision. Since I started to build my investment portfolio I can confirm the following metrics have been the pillars of my market beating total return along the years.
Let’s take a good student 10Q Quartely report :
Apple computers inc
1st important metric is net income in Billions$
You can see that the growth from 2017to 2018 is heading the right way. In any given business if the last 10 years is an uptrend that is a good sign.
2nd is the EPS ( earnings per share)
In apple’s case their buyback program is so big that it has a benefit effect on the shareholder return for the future. The trend you want to see as per below is the shrinking numbers of shares in this case from 5,274,394 to 4,926,609 and by consequence the earning per share going up.
Because the share count is shrinking it gives more room for the company to grow the dividend per share faster as shown below, there is no doubt in my mind that this company can grow the dividend per share by at least 10 to 15% per year for the next 10 years at least.
3rd Crucial metric the available cash & assets available to the company.
Because this gives options for the company to invest in Research and development to grow the business, acquire another company to grow its presence in another area, buyback more of its own shares to increase shareholder value among other corporate decisions.
as you can see below numbers again are impressive : no one has 253 billions $ of available cash assets to grow their business but Apple computers
there you have it. By applying this method for each of my holdings I have been able to get an impressive total return on my investments.
be well & get wealthy