06-09-2015, 03:34 PM
Are you relying on your gut feeling based on those factors, or do you have a quantitative approach to analyze those factors? If a gut feeling, how do you compare investment alternatives?
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Generally how I evaluate a company:
Dividend Yield?
P/E?
Forward P/E?
Debt? Debt to equity? Debt ratio? Times interest earned?
# Years increasing dividends
5 year dividend increase rate
Payout Ratio? Trend in payout ratio?
Looking at quarterly and annual reports: revenue trend? Earnings per share trend?
What is their moat?
How likely are people to still be buying their current products in 5, 10, 25 years?
Where are their expansion opportunities (products, geographies, ect)?
Can I buy at a cyclical or temporary low?
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I take the art & science approach too, although we'd probably arrive at different conclusions about investments, like Buffet and Munger.