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When I see a stock price going up, I don’t immediately think it is a good investment. For me, the more important thing is to understand what is happening inside the company.
I like to look at revenue growth, profit, debt, cash flow and the company’s future growth potential. A company can be doing very well, but if the current valuation is already too high, buying at that price may not always be a good decision.
Sometimes we focus too much on the price and forget about the actual business. I think good stock research means looking at both sides before making a decision.
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