stock market basics

If you were to go buy a business say a Macdonalds Franchise what metrics would you look at?Metrics would be price yearly return,borrowings etc.Well is it really that different on the stock market?How did Warren Buffett and before you go and say Buffett this and Buffett that the guy is a legend.Remember when Buffett started out as a young man he only invested in 5 stocks.All you have to do is a scan of stocks say with a PE ratio under 10 and say a market cap at what you want maybe $50mln or $20mln.Then roll up your sleeves and narrow these stocks down to say 20 and throw them on a watchlist.To narrow down you want a business with a profit history or in the near future,directors to own shares,possible takeover,higher profit going forward,no debt or debt that can be serviced by cash flow.Also if you are keen you can do a profit forecast yourelf for the next 6 months and this will actally let you see through the stock.If you do this all yourself you will know the company like the back of your hand just like owning it.

Other than this you can speculate on a mine will hit a gold nuggett or Graphite being found in New Zealand but you will need to buy these before the herd and don't get caught in the slaughter.