Wednesday 14 October 2015

What Should You Look for in Investments?

Everyone has their own unique way of finding the one investment that works. Some methods are logical, while others lend nothing more than superstition. However, if you are a young investor looking for guidance, where do you go to look for the right investments? Key identifiers in a company can help you filter your choices and create a more defined investment track for you and your portfolio.

Frank Zaccanelli
Frank Zaccanelli

The most difficult ratio to read is actually a big clue on how a company’s financial performance is going. The EV/EBITDA Ratio is one of the best measures for how a possible investment will pan out based on their current market value, including debt factors, divided by their earnings before any effect by capital structure or industry. This shows a pure metric of how the company’s refined earnings are doing in comparison to their debt burden. This has been regarded in academic studies as one of the best ratios to use in analyzing stock investments, according to the Crossing Wall Street Blog.

A more recent trend in investment success has come from looking at factors not involving money. Responsible investing, or investments for a purpose, are ways to dial down investments to one that will make the biggest impact on a community or topic. Frank Zaccanelli, a real estate investor and CEO of Fiamma, is currently working with Centurion American Development Group to refurbish the Statler Hilton into the Statler Hotel & Residencies. He made this decision because of his desire to transform the city of Dallas, which will lead to a better outcome in his investment decision. Putting meaning to your investments will ensure better sought companies and more morally-established operations.