I just thought of sharing my notes and my portfolio on the valuepicker for comments,
I follow the following rules for investment,( company must comply to atleast 80% of these rules )
Rule 1: Company should be run by the promoter who is known in its field, like Reliance, Motherson, , Bajaj Finance, Sun Pharma ,Spice Jet,
2. Clean management, no family run with 3/4 people running the business, would skip if Promoter is over 65/70 years and is still in-charge
3: Company should have a history of positive growth over a long period of time and should have survived business cycles.
4: Minimum EBITDA should be more than 6%
5. Net Debt to Equity of less than 0.5
6. Too much govt. intervention /regulatory environment is a sign to skip ( Telecom ,Power, Road Construction etc.
7. company profitability must be backed by positive operational cash flows, and capex and working capital should not be more than profit on year on year basis,
8.Big 4 Auditors
9. Just added another point, if the company has a good private sector bank as its banker ( like HDFC, Kotak, Yes ,) it is a positive as these banks would do Due Diligence before sanctioning funds
10. Growth in the share prices versus the company profit in last 3 to 5 years to ensure no bubble is forming up on the valuation front.
11. Read the thread on the valuepickr and take part in discussions on company.
12. Follow valueresearchonline to see their score on the company for liquidity, authenticity of books etc.
13. Invest over a period of time rather than in one go.
not able to copy the link so I am pasting my twitter, my portfolio contains
2. Motherson Sumi Systems Ltd.
3. Lumax Industries
4. Spice Jet
5. ICICI Bank
6. Kotak Mahindra Bank
8. PSP Projects
would request for feedback specially if any red flags