I'm often asked what to look for in an investment. My standard reply is:
1. Great Company
2. Fair Price
What qualifies as a Great Company?
+ It generates high returns on capital
+ Regularly Increase in earnings (or operating cash flow)
+ Growing dividends (if you want a dividend growth strategy)
+ Compound intrinsic value (a growing book value is a good proxy)
Btw, that sequence is important, and actually logical. And it all starts with a high ROIC. Meaning, the capital allocation skills of the management are important.
Get free investment training: https://bit.ly/JF-TrainingPage
Join the conversation at: http://bit.ly/FaithFinanceGroup
Get more articles like this: https://www.joshuafong.com