Our Research Method
Having a solid research strategy typically helps a portfolio to sustain performance over an extended period of time. Some investors rely solely on tips and other unreliable sources. While no one ever knows with certainty that a stock will go up in value, we take the time to properly evaluate a company, giving us ample insight into the possibility.
Our way of researching a company focuses on several key criteria:
- Quality of business (balance sheet strength, competitive advantage, management team, return on capital, profit margins)
- Historical and expected growth
- Dividends (higher than market average payout, increasing dividend trend)
- Liquidity
- Historical volatility
- Market sentiment
- Valuation metrics
- Price to earnings ratio, generally we prefer valuations below the market average.
Sources where we gather financial information:
- Review financial publications
- Meet with corporate management
- Internal team-research
- Meeting with sell-side research analysts
- Review company filings
- Review Y Charts (Real-time market data source)