I like to be free minded and hence these are my rules that suits me
- Try to select stocks in majorly stalwart, high growth and assest play as cyclical and turnaround tracking is very time consuming. Bajaj consumer is giving me tough time mentally.
- Stability of earnings and little debt so that the company does not die in a decade or so. So that I spend less time tracking it.
- Industry should be growing at healthy rates so that even if more competition comes, everyone should get pie of the cake.
- When investing, I look that the company should be market leader with little to no competition.
- I like dividend even if it is less than 1 percent. Reason behind this is that it tells us about the intent of the management. Also compounding can do wonder for the dividend also. Also I can not get over the idea that holding company without getting any parts of the profits is pure gambling. I consider increase in the price of the stock as a game of perception. For us stocks, I don’t buy stocks with dividend as it gets difficult to file returns.
- High ROCE and ROE business
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