Some of my investing criteria:
- Only buy what you understand-simple enough lol. But truly if I can’t understand or it’s to complicated I won’t touch it. That’s probably why I don’t own a lot of tech or software names.
- Strong Management. Stronger the management, better the business will be in the long run.
- I absolutely love FCF and if that’s growing and high I’m inclined to look even more into the company but FCF is one of my favorite things to see, way to many companies today just don’t make any money it’s crazy to me. Yes there’s other things to look at like PE ratio and things like that but if you asked me my favorite thing to look at it’s free cash flow.
- Acquisitions but not just acquisitions just for the sake of acquisitions. I would love them to be strategic and make sense. I would have liked management to thought about it and have a plan not just to acquire just for the sake of acquiring. I also like to see a plan and vision for the future. How do you plan to grow, how do you plan to make more money, how do you plan to compete and beat out all the others in your industry. I love a completion and I love when my company can say it’s the best. Maybe lucid one day lol.
- Lastly, always research, continue to verify and invest for the long run.
These are just some of my criteria that I look at, of course there’s more to any investment but I wanted to just share things I do and what I like to see