Make investing easy by saying 'here are three things'.

Reader #1 says...

I attended few of your "Evening with AK and friends" sessions and like the way you analyse stocks.

Can you share how you filter stocks, any key criteria before you put in your shortlist and start going through in details?






AK says...

Well, I cannot give you a set of criteria.

Like Charlie Munger would say:

"I can never make it easy by saying ‘Here are three things’. You have to derive it yourself to ingrain it in your head for the rest of your life."





However, I would tell you my starting point.

I invest mostly for income.

So, whether a stock pays a dividend is an important consideration.

Then, pick it up from there.





If you were to invest for growth, you would have a different starting point.

It is important to match our motivation and our methods. :)

I have a section in my blog's right sidebar titled "Food for Thought".

You might want to read the books listed there. Good primers. :)

Reader #2 says...
Capital Expenditure is shown in the Cash Flow Statement for some companies like WXXXX but Capex is not shown for other companies such as XXX Holding.

How do I tabulate the "hidden" capex?





AK says...
Hide and seek is something I am really bad at.

If it is hidden, I give up.

Just don't invest in that company. ;)





AK is a simple minded person and tries to keep things simple.

OK lah. AK is just being lazy, as usual.

Bad AK! Bad AK!


Remember what Warren Buffett said.

"Just looking at the price is not investing!"






You might be interested in these:
1. Invest for income, ignore the Ms.
2. Get 12% yield? Ask 2 questions.