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Four questions I ask every business

यह लेख अभी सिर्फ़ अंग्रेज़ी में है। हिंदी संस्करण जल्द आएगा।

Every company in my research journal goes through the same four questions, in this order. If it fails one, I stop and mark it dropped. That keeps me honest.

1. The business

What does it sell, who pays for it, and why would they keep paying in ten years? If I cannot explain the business in two sentences, I do not understand it yet.

2. The numbers

Revenue, margins, debt and cash flow, over many years, read straight from the annual reports. One good year means little. I look for a pattern.

3. The price

A great business can still be a poor investment if the price already expects perfection. I try to understand what the market is assuming, and whether the business can do better than that.

4. The patience

I write down why I like the business, set a date to review it, and leave it alone in between. Most mistakes come from reacting to daily price moves.

The journal shows where each company sits in this process: Studying, Watchlist, Thesis or Dropped. It is a learning record, not a recommendation to buy or sell.
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