Every serious investor in this market should have an investment philosophy which he should use as a guiding tool for his behaviour in the market. This is very important because as time goes on you learn many things and fine tune your investment guidelines which suites best to you.
All investment strategies are good ie Long term , short term , Value buyer , Growth buyer, Trader , Jobber ... The point here is you should have one. :-)
Now here goes my investment strategy. This is very important for a reader as you will understand the background from which i am writing on the stocks i like.
I am a growth investor. That dose not mean that i will buy some stocks and sleep on it for ever. I am always looking for companies that are growing always irrespective of market conditions. I do not invest in already discovered ideas for the simple reason that there is not much to expect from it when it comes to returns.
My risk profile for investing is above average. On a scale of 1-10 my risk taking ability is around 7. Which also means that i dont mind investing in a high risk - high return company if i get it at a reasonable valuation.
I love sustainable / recurring revenue stories with a slight high entry barrier in terms of setup cost or technology availability. I am willing to pay a high multiple for such companies.
I do not like highly leveraged companies (high debt equity ratio) or companies with negative cash flows.
I normally do not invest in commodity companies as these are normally cyclical in nature. I also do not like real estate companies as i still could not digest their business model and also due to transperrency issues.
As such i do not have any dislike for trading but i rarely does it. Infact i will share with you some option trading strategy which i religeously follow every month :-)
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