What To Look For In A Company
| Money : Investing One thing to look for in a company that you are considering investing in is the state that its competitors are in. This is quite often easy to judge particularly with high street chains. For instance problems at Marks & Spencers in recent years have been well documented. The state of the competition is important, because a strong competitor is likely to squeeze the margins of the company you are considering and may cause it to struggle. Conversely, if all the competitors in a sector are struggling, it may be a good time to buy into the one company that is doing well as it is likely it is attracting the customers that were previously using the competitors. If a large firm crashes then this may mean that the market share it had will be transferred to competitors, making them at their price now seem attractive.
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