I Never Invest in a Stock Unless I'm Happy With the Answers to These 4 Questions

Where you invest your money is kind of a big deal. Choose right, and you can earn steady returns year after year, and maybe some dividends too. Choose wrong, and you could face heavy losses.

Ultimately, what you invest in is your call, but here are a few questions I always ask myself before investing in any stock.

If I don't know how a business makes its money, I'll have a hard time determining if it will be successful over the long term. Passing on a stock for this reason doesn't mean it's a bad investment -- just that it's a bad one for me. Someone who is more familiar with the industry and the company will be able to read the signs better than I can to identify when a company's making smart moves and when it's making poor ones.

Source Fool.com