13 Steps to Investing Foolishly, Step 6: Discover Great Businesses

Worldwide Invest Better Day 9/25/2012
Worldwide Invest Better Day 9/25/2012

In honor of Worldwide Invest Better Day, we at The Motley Fool are recapping our "13 Steps to Investing Foolishly" -- steps you can follow to become a better, more Foolish investor.

In the following video, senior analyst Joe Magyer discusses Step No. 6: finding great businesses.

As investors, it can be easy to forget that our shares are small slivers of ownership in living, breathing businesses, not random pieces of paper traded like baseball cards. Behind every successful investor are successful businesses, and you can start finding them today just by looking around you. Just as Peter Lynch taught, investors can start finding great investments today by starting with great products and services that they themselves enjoy.

It's important to remember that not all great products are backed by great organizations, though, and you have to do additional due diligence into just how well companies are run. High levels of inside ownership such as those seen at The Buckle (NYS: BKE) are a good indication that the folks in management have your best interests at heart because they're in the same boat with you.

Click the big green button below to join the thousands of people celebrating Worldwide Invest Better Day on Sept. 25!

The article 13 Steps to Investing Foolishly, Step 6: Discover Great Businesses originally appeared on Fool.com.

Joe Magyer has no positions in the stocks mentioned above. The Motley Fool owns shares of The Buckle. Motley Fool newsletter services recommend The Buckle. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.