I have received quite a good number of messages from friends who want to know about good companies. Rather than answering individually, I thought to post my answer here.
It depends on four factors. 1) Your strategy (diversification or concentration in one or a few companies) and nature of investment - long term, short term and your current portfolio. 2) Your risk absorption capacity. 3) Your preferred sector and type of companies. And, finally, 4) Scale of your investment or how much money you like to invest. These are internal factors, which matter the most. Without knowing about these factors, it is not so useful to offer advice.
And, the companies come afterward as essential factors to know about.
For this, the quick and easy way is to analyze financial statements. If
it is for long term, fundamental analysis helps to select companies and
for short term, technical analysis offers insights. For trading,
generally, trend is your friend and capital gain is the primary goal.
And, for investment, it is the company that pays you and the dividend
and growth of the company are the primary motivational factors together
with capital gain.
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