Which three factors are crucial when deciding to invest in a company?

Choosing to invest in a company typically involves assessing elements that can influence both risk and potential returns. Inspecting current stability, growth trajectory, and past performance provides a comprehensive picture of the company's viability and potential for future success.

Current stability assesses how well a company can withstand economic and financial challenges. A stable company is likely to offer a more secure investment, reducing risks associated with volatile market conditions.

The growth trajectory examines how fast a company is expanding its revenues and profits. Investors are interested in companies that demonstrate strong growth potential, as this often leads to higher returns over time.

Past performance acts as a historical indicator of how well the company has executed its business strategy. Investors analyze past performance to predict future outcomes; consistent growth and profitability can signal long-term viability.

These factors collectively enable an investor to gauge the overall health of a company beyond what might be perceivable in the superficial metrics of stock price or dividend yield. They aid in identifying firms that not only perform well currently but possess the ability to grow sustainably in the future.