• His Approach : Fundamental Analysis, bottom up approach, growth + value investing approach
  • Minimum debt
  • Cash Flow From Operations (CFO) > Cash Flow from investing activities (CFI) + Cash Flow from financing activities (CFf)
  • Growth of sales and profits (20 to 25)
  • Check performance of company compared to its peers & advantae ie. MOAT
  • To find MOAT, bufett checks growth rate year on year for past 10 years compare to its peers ( because of less time)
  • Profit margin compared to its industry.
  • Avoid companies when even the slightest sign of compromise of Integrity (Promotors, Directors)
  • If family business, then check the qualification and experience of next generation.
  • Salary drawn by promotros. ie. Promotors want increment when profits declined.
  • Good Management = Dividend increases when profit increases
  • P/E < 10
  • P/B is important in Financial Sctor when most of the assets are cash assets. Otherwise its not important due to adding of historical cost of company. (Warren Buffets also doesn’t care about P/B)
  • Dr. Vijay Malik is focused on Microcap and smal cap
  • Find companies that would survive for next 25 - 30 years

##Annual Reports

1
2
3
* Read as much as past years reports.
* To get idea of an industry, read annual reports of that company.
* Section **MDA** (Management Discussion & Analysis)