Don’t mix it up!

There are many types of companies and they don’t make it worth investing from long term perspective

  • A company whose products you like (Certified Organic) or a great restaurant – may not be a good stock, as it cannot be very profitable and scalable – BUY FOOD
  • A company which is good to work for, and is a good paymaster (IT companies) – not a scalable product/service, good for consulting and earning money from – WORK FOR IT
  • Ethical management and energetic management – Low or no growth (Hawkins Cookers) –  LEARN AND IMBIBE THEIR QUALITIES
  • Dynamic serial entrepreneurs or very well established business group like Tata – They will have the juice out by the IPO time – ADMIRE THEIR QUALITIES AND PROCESSES/PASSION
  • Undiscovered first generation entrepreneur – Depends if it has a scalable model – MAY BE WORTH LOOKING INTO

 

None of the above makes a stock worth investment worthy. Industry tailwinds trump management. Stock PE trumps the narrative fallacy and some more.