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Re: Investment decision checklist
Posted by: DaveinHackensack (IP Logged)
Date: April 23, 2008 12:38PM

John Krantz,

Interesting points. You are a braver man than me to be investing in Chinese pharma companies -- I would have no idea how to evaluate them -- though, to be fair, it's not easy to evaluate small American pharma companies either. I've had some hits and misses investing in Magic Formula pharma stocks so far, but one element of balance sheet analysis that seems to hold true for small pharma companies (as well as other small companies) is that having significant net cash makes the company a more attractive acquisition target.


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Re: Investment decision checklist
Posted by: John Krantz (IP Logged)
Date: April 23, 2008 01:26PM

I doubt anyone here who owns, say...JNJ or PFE...is really capable of analyzing it inside and out, they are so huge. Not saying those are bad investments for as Buffet says, sometimes you just know a good deal when you see one.
All in all, I've found microcaps as a whole much easier to analyze than large multi-billion dollar companies. There are usually less variables, less products to research, and much easier to see the potential upside. My portfolio so far has done much, much better since I weighted heavily in (mostly foreign) microcaps so I think I'm staying there.

Your point about the cash-rich pharma's is spot on. ASPV comes to mind.

At this point, I think we have hijacked the thread...LOL. Lets hear other peoples lists!


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Rating: 3.0/5 (23 votes)



Re: Investment decision checklist
Posted by: mrhiv (IP Logged)
Date: April 24, 2008 11:20AM

1)I use company product for a long time and i don't want to change for competitor?
2)I can understand every percentage of revenue?
3)The company have a great financial health?
4)The stock is cheap?
5)The stock pays good and increasing dividends?
6)The company have a strong market share?
7)The book value is growing in the past 10 years?
8)Earnings are growing in the past 5 years?


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Rating: 3.2/5 (18 votes)



Re: Investment decision checklist
Posted by: mrhiv (IP Logged)
Date: April 24, 2008 11:27AM

In 5-10 years a strong brand means a lot of things and microcaps don't have it


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Re: Investment decision checklist
Posted by: hpmst3 (IP Logged)
Date: May 26, 2008 03:00AM

.


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Rating: 2.3/5 (21 votes)



Re: Investment decision checklist
Posted by: batbeer2 (IP Logged)
Date: May 26, 2008 05:57AM

A short list.

1) The company is at at least a 30% discount to my valuation. Still working to find 50% companies. They are probably there but the problem is my lack of valuation skills.

2) There is no reason to doubt they will be doing business 10 years from now.

Happy investing to All!





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Rating: 3.2/5 (18 votes)



Re: Investment decision checklist
Posted by: goodmast3r (IP Logged)
Date: December 23, 2008 09:32AM

Here is my secret of choosing stock. This strategy is based on value investing.

First I open [screen.yahoo.com]

There I will find stock with these criteria:

* PEG 0 - 0.5
* Dividend 1%-20%

You probably get plenty of stock. So we will remove those stocks with this following criteria.

* Current asset lower than current liability
* High ROE(Equity return) larger than 20%
* High OPM(Operating margin) larger than 25%
* Low Debt/Equity lower than 30%


Ian
www.ourhappymoney.com


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Rating: 2.4/5 (14 votes)



Re: Investment decision checklist
Posted by: kfh227 (IP Logged)
Date: January 22, 2009 10:05PM

CSK,

Jsut look up some Warren Buffet quotes :-)

The moreI learn, the more I realize that checklists can be OK, but no single stock will meet all the criteria that is required.

Find a moat.
Find a barrier to entry
Find a discount to intrinsic value
Consider how the macro-economic picture will be different 10-20 years out (think oil and be honest with yourself)

Also, don't try to pick the winners, jsut know who the loosers will be. This is kinda like the how will the internet change things? Well, newspaper stocks should be outright avoided.

Number one quote:
"Be Greed when others are fearful and fearful when others are greedy"
Imagine not having invested a red cent since you invested into the 2001 crash. These crashes occur every 10 years or so it seems. You'll get your chance!


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Rating: 2.5/5 (13 votes)



Re: Investment decision checklist
Posted by: buffetteer17 (IP Logged)
Date: November 25, 2009 06:04AM

I think that a useful investment decision checklist must be personalized. My investment skills, goals, and timeframe differ from other people's. My past mistakes generated many of my checklist items. Besides that, making your own list is an investing discipline in itself. Makes you stop and think about what matters. Given all that, there are some immutable items that ought to be a core part of any investing checklist.

- intrinsic value >> price

- how does company make money

- supportable level of debt

- quality and duration of moat

- management aligned with shareholders

- ecosystem in which company exists


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Rating: 3.8/5 (11 votes)



Re: Investment decision checklist
Posted by: www.growingrich.net (IP Logged)
Date: December 28, 2009 10:11AM

Here goes my list:

- I look for companies that operate in a sector with high entry barriers and few competitors with big chunk of market share.

- Business not exposed to big changes.

- Dividend policy: they should pay dividend every year and the amount increases steadily year after year.

- P/E has to be 10, maximum 12.

- Income statement and cash flow statement has to be coherent (amazing the amount of companies that use "creative accounting")

- Strong financial position (little debt)

www.growingrich.net


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Rating: 3.2/5 (9 votes)



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