Investment Account

Trading is a very difficult way to make money. Investment is an easy way to make money. In trading, stopping loss is critical. In investment Averaging is critical. In trading, discipline is critical. In investment, Patience is critical. A trader has to be fast. An Investor has to be slow and steady. Remember one can make mistakes when in hurry and avoid when steady.

Quality of business x Quality of management:

• Huge business opportunity
• Sustainable competitive advantage Competent management team
• Healthy financials & ratios

Growth in earnings:

• Volume growth
• Price growth
• Mix change
• Operating leverage Financial leverage

Longevity of Quality & Growth:

• Long-term relevance of business
• Extending competitive advantage period
• Sustenance of growth momentum

Price:

• Reasonable valuation, relative to quality and growth prospects High margin of safety