In stock trading, most investors always recommend comparing companies’ performances with their siblings.
That means, we shall never take a company’s information as granted. We should compare it to other companies that are similar, within the same sector, and within the same financial range.
And that’s a simple yet fascinating way to go about mostly everything.
Simply, comparing with siblings.
As a chef, for instance, how can you tell if your team has produced a good work if you don’t have the skills to assess it?
Search online what other teams did, using ones that are similar to yours, and you’re done.
That is, once again, a simple yet powerful tool: Siblings Comparison.
November 07, 2020