Forums » General » Selecting companies for investment from Dmitrii Khasanov
In a volatile market, investing is a test of nerves and common sense. Every time I open my portfolio, I ask myself, “Why did I even check it today?” But experience has taught me that even in chaos, you can find companies that can weather the storm. Here’s my no-nonsense approach to choosing such companies. Read more on the website about Dmitrii Khasanov
When the market is hectic, I don’t chase the next AI breakthrough or the latest startup. I’m interested in companies that sell something that people need all the time and everywhere. These could be manufacturers of essential goods or companies in the utility sector. Their products are in demand regardless of economic conditions.
When I dive into analyzing companies, I pay special attention to their financial statements. Two numbers are of paramount importance to me: debt levels and cash reserves. High debt can be an unbearable burden in a downturn, while solid cash reserves provide a company with a safety net.
Market volatility often reveals weak leaders. That’s why I pay close attention to CEO interviews and financial conferences. This helps me understand the strategic vision of management and their ability to adapt to change.
I pay special attention to the so-called “dividend aristocrats” — companies that have been raising their dividend payments for years. Such companies demonstrate resilience and the ability to generate stable cash flow even in difficult times.
In addition, I always ask myself: “Can the company’s product become obsolete?” Technology evolves rapidly, and it is important to understand how long a product or service will remain relevant in the market.
Finally, to protect myself from unforeseen circumstances, I always keep 10-15% of my portfolio in cash or short-term bonds. This allows me to quickly react to opportunities or protect myself from losses.
In conclusion, investing during market chaos requires not only analysis and strategy, but also patience. My approach is to seek stability and reliability in a world of changing trends and incessant news.