The objective of my income portfolio is to make investments that result in continuously increasing cash flow. My expectation is that the capital allocated to this portfolio will not be required for a long period of time (i.e. 15 years or more). This allows me to make investments in individual stocks and take higher risk relative to the market. The process and parameters that I use in my evaluation are as follows:
Trend Analysis
The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends for past 10 years.
- Revenue
- Earnings per share
- Net cash flow from operations
- Profit/Loss from operations
- Reported net profit
- Gross margins
- Operating margins
Continue reading rest of this article…
Recent Comments