When investing in individual stocks, do make sure of these points:
- Avoid small-cap stocks unless they’re diversified
- Current assets should at least double current liabilities
- Stock earnings show stability over the previous 10 years
- Look for companies that have a history of paying dividends
- PE (price earnings) ratio must be no more than 15 over the previous 3 years; and
- If their book ratio is less than 22.5, it’s reasonably priced
