Want a Stock That Can Double? Focus on Free Cash Flow
The thought of doubling your money in the stock market sounds good, doesn't it? Achieving this goal isn't all that hard if you can hold onto your investments for a long enough period of time. Even at a relatively low annualized growth rate of 4%, an investment would increase by 100% in value in around 18 years.
If you want to double your money over a shorter time frame, though, it's not as easy. You'll need to carefully evaluate numerous stocks to select the ones with the best chances of delivering strong returns. While there are several factors you'll need to consider, one especially stands out. Want a stock that can double? Focus on free cash flow.
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Source Fool.com
