Basic investing checklist
1) Activate System 2 thinking ? Have you read a company's latest annual report and latest quarterly reports and the annual reports of competitors?2) How is the income, cash flow compared to debt. Is Debt < 3-4 times cash flow/income? Debt not more than 3-4 times normal income.
3) Debt/pensions and liabilities comparable to cash at hand ?
3) EV/FCF 9-10
4) No more than 7% of portfolio.
5) Will the company be around in 20 years? Demographics (internet threat, more energy needs - profitable without subsidies. Baby boomers retiring, special living facilities, diagnostics and treatments.)
6) What is the short interest?
7) Is it good for the consumer or are there better substitutes ?
8) What is the ROIC/gross/net compared to competitors?
