“No wise pilot, no matter how great his talent and experience, fails to use his checklist.”
–Charlie Munger Peter
At StockPkr, we follow strict guidelines of the research process to find winning stocks. We, being little conservative, believe in following a disciplined strategy to find the best stock for us and our clients.
Research Process to Find Winning Stocks:
Here are the five critical factors that we check in find fittest stocks for the long-term investment in India:
- Business: Will people still be using the company’s product/services in the next 15-20 years? This is a crucial point to check while investing for the long-term. It doesn’t make much sense to invest in a declining company or industry whose products will be of no use in future.
- Valuation: Is the stock undervalued, over-valued or decently valued? Buying amazing stocks at a cheap valuation is the key concept of value investing.
- Management: How qualified is the company’s management in the running the business? Are they efficient enough to drive the growth? Was the company’s management involved in any previous cases of fraud/scams? How do they allocate company’s profits? Do they give regular dividends, bonus, buybacks etc?
- Sustainable Competitive Advantage: Does the company has any sustainable competitive advantage over its competitors to remain profitable over the long term? The sustainable competitive advantages can be- brand value, entry barrier, customer loyalty, patents, trademarks, monopoly (single supplier or manufacturer in the industry) etc.
- Scalability/Growth: Will the earnings of the company continue to grow in future? Is the business scalable?
Research process to find winning stocks in the Indian stock market can be a tedious job for the beginners. Going through all the above-mentioned points for every listed company in the stock exchange can consume a lot of time.
That’s why- to make investing easy for everyone- we have hand-picked the best stocks to give you a clear choice of winning stocks. You can find the list of our selectively chosen stocks from Indian stock market here…