Back to the BasicsWhen deciding on a company to invest in, especially when you are looking to hold on to the shares for the long haul, one of the first things you should always do is your due diligence.
Due Diligence is: "the investigation or audit of a potential investment. It refers to the care a reasonable person should take before entering into an agreement or transaction with another party."This is so as to make sure that your potential investment's financial house is in order. The main reason why it’s so important to conduct this analysis is because a company’s financials tell the story about their business health and sustainability.