Growth + Quality + Management + Reasonable Price
Growth – As investors, we are looking for companies which have the potential to grow their profits at a rapid pace.
Quality – Company data from the last 2-3 decades shows that, Growth combined with high quality has the potential to produce returns which are far superior compared to Sensex / Nifty companies.
Management – Managements stand as mediators between investors and free cash flows produced by the company and hence it is essential to become minority partners with managements which have demonstrated a track record of treating shareholders fairly.
Reasonable Price – No matter how good the business or the management, at some price, it becomes silly to buy it. Hence, we attempt to buy at prices which substantially discount the future earnings potential of the business.