Before investing any money:
2. Business model (Sustainable). Only great business gives good return.
3. Don’t go for small investment. Too less money will not make a lot of difference even if things play out a lot in favor. Also investing less money gives you reason to be sloppy while doing research.
4. Read Annual report diligently. No BS
5. No small cap.
6. Competitive advantage.
7. Who are you cloning from?
Go for higher investment near around 50k each
Where the expenditure goes % like goes in raw material then you know that if there is chance of raw material goes high like in case of HUL palm oil or coconut oil
Whether it can pass the cost to consumer or not
Lot of borrowing and no cash -ve cash
Standalone / consolidated : parent company (consolidated ) internal company exchange of things will not make any useful transaction in consolidated financial statement so consider only consolidated ..
Sales are increasing
Asset light business
More profit margin
Small company easy to analyze usually managed by founder
Has big growth prospects
Less seen by market
More volatile gives you opportunities to enter and exit
15-20 % exit ?
May enter again
Management not user friendly
12 per share has 7 per share cash
Quality business doesn’t need great management always it keep itself running with avg management in between a great management boost it .
Cash is a good cushion
Govt driven regulations