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30-09-2010, 03:04 PM
My stock selection process:
a) Good balance sheet. In short, avoid those with high debt (except real estate stocks, since I guess banks are more willing to lend to real estate firms given that they have better quality collateral).
b) low PER or P/B (for real estate stocks only)
c) high percentage of stocks owned by key stakehoders
d) avoid cyclical industries at their peak, unfamilar industries and low margin businesses (low margin may imply lack of moat).
e) look at the downsides, upsides and catalysts before invest.
f) prefer stocks with purchases from management.
a) Good balance sheet. In short, avoid those with high debt (except real estate stocks, since I guess banks are more willing to lend to real estate firms given that they have better quality collateral).
b) low PER or P/B (for real estate stocks only)
c) high percentage of stocks owned by key stakehoders
d) avoid cyclical industries at their peak, unfamilar industries and low margin businesses (low margin may imply lack of moat).
e) look at the downsides, upsides and catalysts before invest.
f) prefer stocks with purchases from management.