Tuesday, December 13, 2005 | | 0 comments

My Investment Philosophy

All investors should have an investment philosophy and here are mine as follows :

1. A concentrated portfolio of no more than 5 holdings at anytime.
2. Business must be highly scalable. This simply means that the company must offer me good growth in its own core business.

3. Management must be ambitious and capable to lead the healm to bring the company to greater heights. Setting up a business and growing the company are completely different issues and challenges to me.

4. Set high barriers to entry. Having high barriers to entry to me is not that important as it's probably pertained to the industry that the company is in. Ability to set up high barriers to entry is of greater importance to me.

5. Company must have its own R&D team. Needless to say, when we buy into a company, we buy into its future and not its past. R&D is a must to stay ahead of competition.

6. Business should be concentrated on its core business. Speaks for itself.

7. Good mix of products with a ready new line of products coming up.

8. Potential to be a multi-bagger.

9. Company must have a positive cashflow and preferrably free cashflow.

10.A market leader in its own industry.

11.Ethical investing. No livestocks, gambling or moral degrading companies.