No qualifying author-owned investment thesis was confirmed in this post.
no investment thesis: educational post without actionable trade
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1. Low revenue concentration. Top customers are small as a percentage of the revenue pie (think MSFT not LMT)
2. Growing revenue on an absolute basis and on a per share basis (think V not PYPL)
3. High percentage of revenue is recurring or purchased at frequent intervals and therefore continuous (Think AMZN and NFLX not GM or F)
4. Purchased by customers who generally do not need to employ debt to make the purchase. Leaves too much outside the companies control (KO not TOL)
5. Company does not need to borrow significantly to generate above average ROEs and ROIC (asset light vs asset heavy businesses)
6. Is able to reinvest a large portion of their profits in the business at the same or similar ROEs and ROICs (NVDA not CL)