08-23-2014, 10:59 PM
I am pretty similar to Kerim in my due diligence.
First check is FAST Graphs to see how the PE compares with historical norms. I also like to look at the last 10-15 years to see how consistent the company is during a business cycle. I like to have a steady increase in dividends and earnings and analyst estimates predicting similar growth in the future.
I like companies with good balance sheets, good cash flow, low debt, good credit ratings. I don't dig into SEC filings or anything, but general look at Morningstar and Yahoo Finance to see the cash/debt and trends.
If both of these look good I generally check out the company website to see if any investor presentations are available and then read the last couple of quarters worth. I will also try to check out a transcript or two from recent conference calls.
If all looks good I make my purchase.
First check is FAST Graphs to see how the PE compares with historical norms. I also like to look at the last 10-15 years to see how consistent the company is during a business cycle. I like to have a steady increase in dividends and earnings and analyst estimates predicting similar growth in the future.
I like companies with good balance sheets, good cash flow, low debt, good credit ratings. I don't dig into SEC filings or anything, but general look at Morningstar and Yahoo Finance to see the cash/debt and trends.
If both of these look good I generally check out the company website to see if any investor presentations are available and then read the last couple of quarters worth. I will also try to check out a transcript or two from recent conference calls.
If all looks good I make my purchase.