How do you make money from stocks?

There is a lot of confusion about this subject, which is a simple thing.

In the end, a minority shareholder can only win two things:

Growth and/or Dividends.

And that leads to another confusion, which is to seek these things, when in fact, they are a consequence.

So what you should look for:

• Companies that profit and generate cash efficiently.

• Companies that control cash and debt appropriately.

• Companies with good management and good governance.

The companies that have the data above will produce money efficiently will generate a surplus of cash.

With this surplus, if the company has good management, it will:

• Investing in your own company = company growth.

• Buying other companies = company growth.

• Paying Debts = growth and/or dividends.

• Repurchase shares = growth and/or dividends.

• Distribute profits = dividends.

So it's very simple:

1 - See if the company is good (the three items above).

2 - See if the company returns to the shareholder = Growth and/or dividends, but if 1 is true, 2 is true.

Simple, stop complicating.