Every successful business aims to do two things: attract new customers and keep existing ones happy. The best companies are problem solvers. Today will be a sweet article discussing what makes a company successful and how an investor can capitalize.
Stocks are difficult to pick when you don't know what to look for. There are so many variables to analyze, so which ones are important to hone in on? I write all about how a successful investor picks stocks in my book, 7 Investments In Your 20's That Will Change Your Life (The reviews will show you that).
To give you a preview of the variables a successful investor looks at when picking stocks, here is a list off the top of my head:
• Transparency and ease of access
• Volatility
• Potential
• Yield
• Tax efficiency
• Tracking rate
• Liquidity
• Location of the company
• Expense ratio
• Exit load
• Asset segregation
• Stock variety
• Debt-to-equality ratio
• Industry/Sector classification
• Company size/Market cap
• Growth or value orientation
• Previous performance of funds/Track record/Financial viability
Let me be the first to tell you that these terms are difficult to understand. It's even more challenging to look for them when picking the right stocks. To get a more in-depth detail of what these terms mean and how a successful investor uses them to their advantage, you'll want to uncover those answers here.
No need to worry! There is a more time-efficient way to pick successful companies. All the variables listed above are significant, but the #1 reason why companies on the stock market succeed or fail is more simplistic.
Are you ready for the secret?
The best stocks you can pick on the market are the companies that are the best problem solvers.
Sure, I could tell you how companies like Google, Apple, Amazon, and Netflix have solved global problems, and that's the reason why they are on top, but you already know this.
Have you ever heard the saying, a happy customer is a repeat customer? Successful companies make their customers happy because it is a lot easier - and less expensive - to get new business from existing customers.
Let's discuss a company that you probably haven't heard of.
Zendesk (NYSE: ZEN) understands this. They create software that enhances any organization or company's customer experience. A few of the benefits include:
Improved customer satisfaction
Superior operational support
Increased agent productivity
High-ranking team management
Here is the bottom line: Organizations that use Zendesk support attain an average customer satisfaction rating of 95%.
It's no wonder why revenue for Zendesk is growing 24% year over year. They have beaten sales estimates by an average of 24% and earnings estimates by 59% in the last three quarters.
The short: Zendesk enhances customer service while making the companies and organizations who use their services more productive.
The stock is up nearly 80% over the last 52 weeks. There is still plenty of potential upside ahead in the coming year(s).
The world is becoming more connected, and online customer satisfaction is in high-demand for all businesses.
Good Investing,
Dan Sarver
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