The next bit is simple. Bring it all together and decide whether you want to buy the stock. Don’t worry about share price trend, this is the fundamental bit. On the fundamentals is this a stock you’d be happy to fall asleep holding. As Buffett exaggerates – “would you be happy if they closed the stock market for ten years whilst you were holding this stock?”
If the answer is “No” file your research for another time. If the answer is “Yes”, then move onto the next stage…timing when to buy the stock…. But we’ll get to that later.