Simple Checklist

Before investing any money:

1. Management

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

High ROE

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 ?

Think also

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

Several moats

First  mover



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