The Number One Rule Breaker Investing Trade Is Net Profit Margin

Gnott: Most of my favorite companies are quite profitable. A simple rule of thumb, i often look for companies that have net profit margins. That means profits after you've taken out everything, including taxes,. If they still have ten cents or more of profit on the dollar, that's a net profit margin of ten % or higher. And then the fifth trait is strong past price appreciation; I like to see a stock that beat the market over the past six months before i recommended it.