Checklist


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?

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