I take a considerable amount of time to perform a thorough quantitative and qualitative evaluation for any stock or the company. I believe it is necessary since I am investing for long haul. How does a one month or two month matter when I am attempting to visualize for next 10 years or more. Yes, I agree delaying couple of months will make me miss the window of opportunity or as the stock investing lingo says, missing the multi-bagger.
I screen out many companies before I decide to spend long hours looking into its numbers and future direction. I keep my screening process very simple. The parameters I use for screening are as follows
Operating cash flow: A consistently positive and growing operational cash flow shows the strength of its products and demand in market place. In addition, to a certain extent, it also demonstrates management’s ability to manage the generated cash.
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