The author argues the stock market is not a casino, though many people treat it like one, and quotes Warren Buffett calling it a church with a casino attached. Shares represent actual ownership stakes in businesses, whose value can rise as the companies grow. The author screens stocks by favoring businesses they can understand, with growing revenue and earnings, strong net profit margins (net income divided by total revenue), and manageable debt. Competitive advantages such as strong brands, switching costs, economies of scale, network effects and barriers to entry are also valued, along with dividend payments from established companies.
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Original headline: What Is the Stock Market ? It Not a Casino . Here How I Filter Winners From Losers .
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