How to pick the next profit stock - fundamentally

I love to learn, and I am constantly doing it. I don't think there are any other ways to earn money except learning it first. Either from people, from books, mentors, or whatever it may be...!

We have seen many books about getting rich in stocks. Some of us love fundamentals and others prefer technical analysis. While both ways can help earn money, I choose to be fundamental on stock!

One of the reason being that love economics and I was fascinated on the fact that small little things can change a stock price so much! And how small little news can earn you a lot, or make you lose money till your pants drop.

Saying how to pick a profit stock, I will go by some of these points:

First, knowing what happened around the world...Company especially cyclical ones are sensitive to economy and world environment. So this is the first and most important thing to look at before choosing. Let's take a great example, Japan's earthquake triggered the nuclear reactor...this is a bad news for Tokyo Electric Power Co (TEPCO). The company had a hard hit on the bad news, and those stock owners who did not read the news suffered great losses..

Second, company profile. This is simple, wanna know the company? Google it, or search it in wikipedia, or go to their site. Read it. After reading, ask yourself...do you really know this company well? Is the company as simple as saying  'Coca cola sells carbonated drinks'? or  'Starbucks sells coffee'? For some cases, if you can't figure out what a company is doing then avoid owning the share.

Third, is company earnings. Now you need spend some effort reading some of their earnings figure, profit numbers, etc. These are very much related to accounting. But wait, you don't need to be an accountant to read it. I flunk my accounts paper before and now I am reading income statement, balance sheet and cash flow statement. Ripley's??? Believe it or not??

Fourth, the management. Investors will only invest their money in a company that are trusted...If company was facing trouble or sudden change on management. We surely know that share price will be triggered. Great example of what happened yesterday, David Sokol resigned from Berkshire Hathaway (company own by billionnaire Warren Buffett). This triggered an impact over the company, and for sure a change will respond to a drop of share price. Be it short-term/long-term.

Legendary investor, Warren Buffett

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Go through this steps...you will find a company that's worth investing. I am sure of it!

........but if you are lazy, then you have just wasted your time reading my post just now. Too bad, find some other magic article worth your time.