---
title: 'How to Pick Stocks to Buy!'
source: 'https://youtube.com/watch?v=3qYE544D23E'
video_id: '3qYE544D23E'
date: 2026-08-23
duration_sec: 68
channel: 'Personal Finance Circle '
---

# How to Pick Stocks to Buy!

> Source: [How to Pick Stocks to Buy!](https://youtube.com/watch?v=3qYE544D23E)

## Summary

The video emphasizes the importance of understanding a company's business model, financial strength, and risks before investing in its stock. The speaker shares three personal rules for stock selection that have led to profitability over five years, focusing on investing in top companies within their industries and recognizing their competitive advantages.

### Key Points

- **Understand the Business** [00:01] — Before investing, understand how the company makes money, its strengths, and the risks it faces. Avoid investing in businesses you don't understand.
- **Three Rules for Stock Selection** [00:13] — The speaker follows three rules: (1) believe in the company, (2) only invest in a product you understand, and (3) invest mainly in top companies in their industry.
- **Profitability Through Rules** [00:28] — Following these three rules has made the speaker profitable in the stock market over the last 5 years.
- **Industry and Competitive Advantage** [00:43] — Understand the industry in which the company operates and recognize its competitive advantage—what sets it apart from competitors and helps maintain its market position.
- **Better Decisions, Not Gambling** [00:56] — Understanding a business leads to better investment decisions, ensuring you are investing wisely rather than gambling.

### Conclusion

The core takeaway is that informed investing—based on understanding the business, its industry, and competitive edge—leads to better decisions and long-term profitability, rather than speculative gambling.

## Transcript

understand how the company makes money first. Understand the strength of that company, understand the risk of the company is facing, and don't just invest in a business you don't understand. So, for example, for me, before I invest in
any stock, I must follow three important rules. Now, the first rule I always that I believe in. That's the first rule. The second rule is that I only product. And the third rule is that I only invest mainly in top companies in
this earlier. Now, following these three rules has made me become profitable in the stock market over the last 5 years. So, the principle of investing only in important to successful investing in the stock market. And also, understand the
industry in which the company operates, and recognize the company's competitive advantage in that industry. That is, you need to understand what set the company apart from competitors and helps maintain its market position in that
this rule is that when you understand a business, you can make better decisions when investing. And that way, you know that you are making good investment decisions, and you are not just gambling. I hope you understand.