The Hunt

The Hunt

What I look for in Companies:

Quantitative

1. Sticker Price: The market cap ( Number of outstanding shares times the selling price), an example: Tesla: 3,160,000,000 shares outstanding times $160 = $505,600,000,000 market cap valuation. This is the price you are paying for.

2. Free Cash Flow: free cash flow is the cash left over after a company pays for its operating expenses (OpEx) and capital expenditures (CapEx)

3. Balance Sheet:
  Total assets (minus) Total liabilities
  Current assets - current liabilities
Apply these discounts or premiums to the market cap

4. Income statement:
  Revenue
  Gross Profit
  Net Profit
  Outstanding shares ( are they increasing-dilution or decreasing-buybacks)

Qualitative

Competitive position and differentiation
Ever enduring advantages
Future Demand
Is the business getting better?

Spawnablity
Diversification and concentration
Antifragility

It may seem daunting to grasp these concepts and attributes.  But I would encourage you to take it slow and understand these things take time, curiosity, and consistent effort to mentally digest.