Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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Tuesday, 2 April 2013
The Six Important Financial Parameters
1. EPS
2. Operating Cash Flows
3. Net Sales
4. Book Value per Share (BVPS)
5. Return on Invested Capital (ROIC)
6. Debt to Net Profit Ratio
Gold Standards
1 - 4 : Growing at greater than 12% per year for 10 years
5. >12% every year
6. <3 br="" nbsp="">
Past Performance
Profit Margins (OPM & NPM)
Debt/Equity ratio
ROE
Working Capital Management
Having established the company's solid financial track record, now look at their competitive strength.
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