SSG Blunders & Bloopers / Understanding Company Debt and Leverage

Are you aware of your “blunders and bloopers” on the Betterinvesting Stock Selection Guide (SSG)? Recognize the common mistakes made by both experienced and beginning investors. See how to recognize problems of over-estimating Sales and EPS growth rates. Gain knowledge in Section 3 as to when, and when to not, eliminate outliers.

In Section 4, master how to select prudent future High and Low P/E Ratios. Is your High Price too high? Is your Low Price low enough? See what happens when you incorrectly set your High Price or Low Price. Understand how companies of various sizes, and industries, are analyzed differently on the SSG.

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Do you shy away from investing in companies that carry debt? Successful companies can borrow money to help grow their businesses. How much debt is "too much" on a company's balance sheet?

Critically evaluate how a company's capital structure impacts its risk, profitability, and long-term viability. Gain knowledge on how debt is utilized by companies in different industries. Learn to distinguish between prudent, growth-fueling leverage, and excessive debt that may threaten shareholder value.