| Q1 | Does the company have any IDENTIFIABLE CONSUMER MONOPOLIES OR BRAND NAME PRODUCTS |
| Q2 | Do You UNDERSTAND HOW IT WORKS |
| Q3 | Is the company CONSERVATIVELY FINANCED (Debt to shareholder's equity ratio should be very low) |
| Q4 | Are the EARNINGS of the company STRONG and do they show an UPWARD TREND |
| Q5 | Is company allocates capital only to those businesses within its REALM OF EXPERTISE |
| Q6 | Is the company buying back its shares periodically |
| Q7 | Is the retained earning increased EPS over time and therefore SHAREHOLDER VALUE |
| Q8 | Is RETURN ON SHAREHOLDERS EQUITY ABOVE AVERAGE |
| Q9 | IS THE COMPANY FREE TO ADJUST PRICES TO INFLATION |
| Q10 | DO OPERATIONS REQUIRE LARGE CAPITAL EXPENDITURES TO CONSTANTLY UPDATE THE COMPANY'S PLANT AND EQUIPMENT |
| Q11 | What bad news driving the price down |
| Q12 | How much the share is affected by economic fluctuations |
| Q13 | What's the beta value |
| Q14 | Is it a public company |
| Q15 | Do you understand how it makes money |
| Q16 | Are you investing at a reasonable price |
| Q17 | Will it last forever |
| Q18 | Is it having limited debt |
| Q19 | Is it having high barriers to entry |
| Q20 | Is it immune to extrinisic factors (Events going around the world) |
| Q21 | Is it having low reinvestment cost |
| Q22 | Is it having controlling shareholders (Avoid such companies) |
| Q23 | Have you analyzed the company’s financial statements for the past ten years? |
| Q24 | Have you investigated all the company’s liabilities and risks? |
| Q25 | Have you examined the track record of the management team? |
| Q26 | Have you looked at the company’s competitors? |
| Q27 | Have you considered the future of the market this company is in? |
| Q28 | Have you looked at whether any insiders are selling their shares in the company? |
| Q29 | Have you read all the footnotes to the company’s financial and cash flow statements? |
| Q30 | Have you analyzed whether cash flow and costs match the reported revenue growth? |
This blog is an attempt to give a quick snapshot of the company and to encourage the readers to study the details further on fundamental grounds.
Checklist
Subscribe to:
Comments (Atom)
No comments:
Post a Comment