Wednesday, December 27, 2006

8 Criteria of Choosing Stocks

Adam Khoo's 8 Criteria of picking good stocks!

1) History of consistently increasing sales and earnings
2) Sustainable competitive advantage
3) Future Growth Drivers
4) Conservative Debt - Low Long term debt
5) Return on Equity (ROE) must be consistent and high
6) Low Capital Expenditure required to maintain current operations
7) Honest & Competent management
8) UNDERVALUED: Share price < Intrisic price

Pretty basic stuff, but these are the things which we always overlook...

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