This is how my investing strategy has evolved so far. I would kindly request the board members to help me refine it.
1) Identify companies with good track record. (i.e,) 3 Year Sales growth, Profit growth, ROE, ROCE, FCF etc
2) Good Management. (Promoter Holding, Equity Dilution, Wealth Creation, R&D Expenditure, Any fraud history etc)
3) P/E - This is the single metric i use to find the valuation. I will see anything less than 15 PE as reasonable price and will not invest grater than 25 PE. I know this is a big drawback but I am living with it. I will surely miss companies that revive (due to high PE) but I am OK with that.
4) I will also look at NIFTY PE. I usually will be 40:60 on equity/debt if the NIFTY PE is around 20 to 25. I will increase equity allocation when NIFTY PE falls below 20 PE. Again this another drawback, for the last 10 month I could not invest much into equities. I know looking at stock specific stories is the right way but I am not yet matured to do it that way.
5) I am inclined towards companies that produce products that are easier to recognize. i.e, KRBL, Eicher, etc.
I would again kindly request the seniors to help me refine it. It has been a wonderful journey with value picker so far. I have started documented my portfolio since beginning in this thread. Thanks again for all your mentoring.