When markets play the yo-yo game, investor confidence doesn’t have to follow suit. Of course that’s easier said than done. So what makes the difference between the investors like Warren Buffett -- who have nerves of steel -- and the ones who yell at the TV while watching CNBC? Simply stated, investors like Buffett don’t lose sleep at night, because they consistently focus on acquiring companies that hold strong fundamentals, and on doing so at opportunistic times. And that is something anyone can do.
The current ratio is a liquidity ratio that illustrates how easily a company can cover short-term obligations with current assets. A rule of thumb is that if a company has a current ratio of less than 1, then it can’t cover all its short-term obligations if they all come due at once. The net margin illustrates how much is retained in terms of profit relative to dollars earned. Higher margins give a firm more pricing flexibility and allow it to better weather an economic storm.
Source: Seeking Alpha
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Posted by D4L | Monday, August 22, 2011 | ArticleLinks | 0 comments »________________________________________________________________
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