- 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
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* Read as much as past years reports. * To get idea of an industry, read annual reports of that company. * Section **MDA** (Management Discussion & Analysis)
Author Ashish Doneriya
LastMod January 1, 2019