Investment check list is summed up from their own investment system, their own use. May not be the same as many people’s ideas, for reference only, if you feel unreasonable, a smile can be.
1 found ready to invest in business
Keep your own news, information, or communicate with people and find businesses that may be interested in investing. Can cause us to invest in the interests of enterprises, often need to fate, cherish this fate. In particular, pay special attention to the occurrence of the Black Swan incident, ask what business may be hit very powerful, there may be investment opportunities? This way of thinking into their own intuitive reaction mode.
Find prospectus, annual report, research and other grassroots investors on the enterprise analysis of information.
2 Analysis of category history
If more than category, need to understand the development of multiple categories of history, if a single category, to understand the history of a category.
The history of the category can be learned from the history of some industries, business and entrepreneur biography. Be sure to understand that the industry and the category is not exactly the same, it is likely that the industry is not very good, but the category or category of a characteristic vibrant. Even if the steel industry, may also be worth a part of the investment category.
Investors can be interested in their own category, read more history, usually more prepared.
The history of the category needs to know how the past category evolved, which features were more important, and why? Category development history, what companies have brilliant, and later how weak.
3 to understand the status of the category
View prospectus, annual report, research report. No matter how old the prospectus, have to dig out to see. What is the core feature of the current category? What is the relationship between category and competitive category? What is the competitor between the category and the category? Clear category in which the development stage.
4 Analysis of the enterprise to occupy the characteristics of the possibility of category, stability and sustainability
The enterprise has not occupied the category characteristics, what characteristics of occupation, competitors have not occupied the characteristics of what characteristics? Is a lot of enterprises together to occupy a feature, or has formed the industry leader?
Can the product characteristics evolve into market characteristics? Will product features change quickly?
Reverse thinking, if the enterprise can not occupy the product characteristics, which business may be occupied? why?
Analysis of business models
How does an enterprise deal with the relationship between stakeholders? How to motivate stakeholders? How to profit? What is the difference between a business model and a competitor? The importance of the business model is not the uniqueness, but whether it is able to grasp the category and characteristics of the opportunity, whether to stabilize the stakeholders, and make their own good profit.
6 product, consumer and brand verification
View and test the company’s products, observe the consumer’s response to the product, view some of the site of the enterprise statistics.
Watch all the advertising and public relations information to see how the enterprise is brand-building, to determine the brand building and the development stage of the consistency.
7 management and employee verification
Find all possible business leaders information, observe their interviews, read their articles on corporate development, see their understanding of corporate strategy and future development.
Ask yourself two questions: If I was ceo, what would i do? If i am a entrepreneur, are there any new class opportunities for me to seize?
If possible, look at the views of employees on their own business, just understand the views, do not care about its specific judgments, feel the possible corporate culture.
8 Financial data validation
View the historical financial data of the firm and its competitors and the current financial data to determine whether to support the qualitative analysis and judgment before. If not, think about why? Is the analysis wrong? Or because of the impact of macro factors, making data distortion?
Whether there is a history of financial fraud, if there is, one vote veto. Financial data look at roe, look at asset quality, profit quality, and then look at asset-liability ratio, gross margin, free cash flow and so on.
9 whether there is any investment opportunities
Through the above analysis, to determine the scope of the enterprise intrinsic value, if you can not understand, can not determine, give up.
To find out the valuation of corporate history, as an investment reference. Is the current market valuation far from what we expect? If there is, cut the above analysis in line with our logic, then you can consider buying, the less underestimated, the more buy. If not, continue to wait.
Also need to look at the historical valuation of competitors, the opponent may have the opportunity to buy.
Investment opportunities should be based on at least doubled on the basis of, rather than only up a few or even dozens of percentage points.
The first quarter, half a year or a year span, the enterprise to track. To see whether the enterprise is moving in the direction we expect, is not a great change in the development of the category.
If the financial data does not look like that, think about why? If you find the tracking of the enterprise, a fundamental change has occurred, give up the business.
11 to re-determine investment opportunities
Through the analysis and tracking, if the enterprise competitive advantage to determine the logic of the same, but in a good investment opportunities, then you can consider increasing the buy.
12 waiting for the opportunity to sell
Under normal circumstances do not casually sell, unless the enterprise is far overestimated, the competitive advantage of the enterprise has undergone a major change, the enterprise indiscriminately abandoned the opportunity to seize this should be seized.
Who do not know when it will rise to the highest point, it is best to use the method of selling in batches.
Constantly updated and relive their concerns of the enterprise, looking for new investment opportunities.