2. Will this business last for next 10 years 3. Who is the largest shareholder (largest SH should be at top management) 4. Management past experience 5. Net profit must grow consistently for 3-5 years 6. Strong operating cash flow 7. Low debt level
All this information will get from financial report. Check vi.app- make sure all at least need to get 6 points
Buy to hold-Cow
Buy to see- Gorilla
Company Biz Model Management Number
Nike Selling sports shoe/wear Good management Good position IOI Property biz Good management Bad position Hup Seng Selling biscuits Good management Good position FB FB ads Good management Good position Singapore Airlines Airline coz it is government wan Good management Bad position Parkson Retailing- sustainability not sure - -
The ultimate Watchlist
Company 3R Intrinsic Value Price Under/ under value
Nike $114.90 based on price $169.72 Over- keep watchlist to sales method Hup Seng RM1 RM0.95 Under- buy share FB $308.6 $364.72 Over- keep watchlist
3R: 1. Right biz model 2. Right management 3. Right value vs Price
How to obtain intrinsic value: Need to know how to calculate
1. Price to sales- Growth
2. Net asset value- asset company 3. Dividend yield-dividend