Thread/ 5 investing 'checklist' items.
I don't personally use or follow a strict checklist. I certainly don't think it could be used as a screening tool. But here are some general criteria I like to see in an investment.
I don't personally use or follow a strict checklist. I certainly don't think it could be used as a screening tool. But here are some general criteria I like to see in an investment.
1/ A founder-led/owner operator business with high insider ownership & a focus on long-term, intrinsic value per share growth. Ideally I'd like the CEO to have a majority of their net worth invested in the company.
2/ A sustainable competitive advantage & moat. Preferably in an industry with high barriers of entry, a low cost production advantage & pricing power. Ideally they are able to disrupt the industry.
3/ Strong organic & inorganic growth. Preferably in a fragmented industry in which value accretive acquisitions are a possibility. A large & growing TAM in which they are market leaders and/or have the ability to control a large % of market share in the future.
4/ A relative small market-cap with a long runway for growth. Ideally a company between $100m - $2Bn. I am always willing to go smaller or larger for the right opportunity. But an illiquid security thats hard to access for institutional investors is a bonus.
5/ Exceptional capital allocation. Management with a proven track record of allocating capital. High returns on equity, buybacks at low multiples, only diluting to create value, reinvesting earnings for long-term value creation etc.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
