Investment by yourself is very simple and finding a multibagger is simple. You should consider the following points to find one.
- Margin of safety is a must. You should buy only stocks that have hidden values in them.
- The stock should be reflexive, the trend should be self-reinforced in raising the price of the stock.
- Look for the Reasons for turnaround.
- Check whether the stock is attractive or not.
- The product/service of the company should have sufficient market potential to make a sizeable increase in sales for at least several years.
- Management should have the determination to develop a product that will increase sales when the growth potential of current products are largely exploited.
- The company should frequently spend on R&D.
- The company should have above average sales arm.
- The company should have higher profit margins
- You understand what the company is planning to do for improving the profit margin.
- The company should have good labor relationships.
- The relationship between large promotors and shareholders should be smooth.
- The Management should have greater depth and should be able to work better even when the key man is out.
- The management should know Cost analysis and accounting. The company should know the profit of each product and its relationship of it to other by-products.
- The management should also work to improve other aspects of the business-like patent protection and reduce retail business lease cost per dollar, low insurance cost per dollar, etc.,
- The company should have a short and long-term profit outlook.
- The company should have future growth with sufficient equity finance that benefits the shareholders.
- Management should talk real facts to investors during bad times
- You should check for Management integrity.
- If it launching IPO read the red prospectus of the company thoroughly.
Still, do you need more clarification regarding company selection. Our team will help you out with a list of shares based on your financial goal with real-life examples.
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