1. How long has this company been in existance, and what is its track record (PE,volume traded, expenses, etc). This should be the very basic study that anyone should do before investing in a private company.

2. Is the product they are selling in high demand, and/or needed in good or bad times. If you choose stocks like this, you increase your chances of successfully investing in that stock. NOTE: Stay away from fads!

3. Does the company pay dividends on its shares, and I also like to check for stock splits, which is an indication of growth. Always reinvest your dividends, which I like to refer to as free shares.