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Re: Investment decision checklist
Posted by: stockticker (IP Logged)
Date: November 23, 2010 04:18PM

spam information, been deleted


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Re: Investment decision checklist
Posted by: augustabound (IP Logged)
Date: February 20, 2011 06:12AM

Read something interesting a couple of weeks ago. It's about making, for lack of a better term, a blackball list for CEO's and BOD that make potentially value destroying decisions.

A prime example that I've noted is Chesapeake Energy. Last year the BOD agreed to buy the CEO's (coincidentally also the Chairman of the Board) antique map collection for $12 million.

So for me, the CEO (and Chairman) go on a blacklist and the other board members get kind of a yellow flag on my list.

A great place to find these types of things is footnoted.org. They year end "worst footnote" contest is usually pretty entertaining, unless you're a shareholder in one of the noted companies.


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Re: Investment decision checklist
Posted by: haoafu (IP Logged)
Date: July 31, 2011 05:53PM


Mine is work in progress as well. I'll skip the financial metrics part as most people have their own sets.

1)Am I familiar with the background of the industry and product/service provided by the company? Better yet, am I an expert or have a lot of interest/connection in the industry/company? Have I followed it for at least a year or two?

2)Have I read through most/all the available articles/data/annual reports/quarterly reports about the company? How about the major competitors within industry and other competing industries?

3)Do I understand how the company generates cash/profit and how the competitive advantage/landscape evolved in the past and will evolve in the future?

4)Do I have or could find a way to have first hand information about the company, supplier, sales, marketing ,customers...

5)Is the stock price a no brainer? Preferably I only want to pay cheap price for a great business, or a ridiculous low price for a normal business. I'll never touch a bad business no matter what the price is.

6)Is the management stockholder friendly? Are they acting like an owner rather than somebody hired by the owners?



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Re: Investment decision checklist
Posted by: ged gould (IP Logged)
Date: February 15, 2012 11:32AM

1) net earnings % in excess of 10% and ideally 20% and above
2) gross margins of at least 40%
3) gearing less than 50% (if financial stock less than 150%)
4) aggregate capex over past 10 years less than 50% of net earnings over past 10 years and ideally less than 25%
5) net eps every year for past 10 years
6)continuous dividend payments for at least 10 years
7) consistent growth in eps and dps over the past 10 years (average eps growth over past 10 years of at least 7% per annum)
8) shareholder friendly by consistent record of buying back shares
8) wide moat

Favourite US pick would be Microsoft and in Europe standard chartered bank (uk listed) which is remarkably similar to wells Fargo but operating in more attractive asian growth markets


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