Come whatever event (health crisis, economic bubbles, economic recessions, political events, etc.), there should not be any doubt on business survival.
Earlier it used to be only food companies into this category, but now there are many.
Thread - How to spot a potential multibagger
Multiple fundamental parameters however we cannot be rigid on any of these parameters.
Be flexible to interpret things from bigger picture point of view.
Come whatever event (health crisis, economic bubbles, economic recessions, political events, etc.), there should not be any doubt on business survival.
Earlier it used to be only food companies into this category, but now there are many.
At any point of time, we can think with a certain common sense approach that if management wants, there can be a sustainable growth at any point of time.
Obviously this growth may come thru innovation, optimization, etc.
Management should be forward looking, should be able to read into future to build right growth avenues, should be considerate towards every stakeholder.
In addition management should be ethical & should have good social image too.
There should be a reasonable skin in the game from promoter.
If in case there is a low promoter stake, then promoter should increase stake at every possible opportunity.
Also pledging should either be zero or minimal.
Debt is becoming a dirtier word at individual as well as at corporate level.
Lower the debt, better the valuations.
At the most fundamental level, a company's ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF)
Lesser the equity dilution, better will be the valuations.
Management should avoid the equity dilution at all times. To improve the liquidity, equity dilution is good sometimes however it should be only when the proportionate growth is visible.
If company is showing earnings of 100 & giving dividend equivalent of just 10 or less, raise more doubts on such companies before building conviction.
It has been a great learning experience based on this parameter.
Thr shd be good dividend policy
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“We don’t negotiate salaries” is a negotiation tactic.
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
