The Thoughtful Investor
Module Units
- 1. Introduction
- 2. The World Of Investing
- 3. Equities Don't Outperform All Asset Classes All The Time
- 4. Attributes Of A Full Time Investor
- 5. The Pain Of Losing
- 6. Buy What You See
- 7. Intrinsic Value – Theory And Practice
- 8. Bull Market, Trends And Economic Bubbles
- 9. Identifying Tops And Bottoms
- 10. Identifying The Next Big Trend
- 11. Company And Financial Analysis
- 12. Acquisition
- 13. Evaluating The Management Of A Business
- 14. Dividend - The Only Sure Thing From A Stock
- 15. Operating Leverage
- 16. Stocks To Avoid
- 17. Drivers Of P/E Ratio
- 18. Buying And Selling Strategies
- 19. When To Catch A Falling Knife And When Not To?
- 20. The Ones I Saw And Missed
- 21. When To Sell And When Not To?
- 22. Analyzing Sectors And Industries
- 23. Commodity Cyclicals Are Not Long Term Bets
- 24. Analyzing Holding Companies
- 25. Analyzing Secular Growth Stocks
- 26. Portfolio Construction Strategies
- 27. When And How To Leverage And When Not To?
- 28. The Final Word- Checklist
Analyzing Secular Growth Stocks
The section concludes with this Chapter, which lists the points made while analyzing companies with long-term growth such as consumers, IT, and pharmaceuticals.
Pricing power - If a company can raise its prices by 6-8% per year or maintain its prices while the input costs are low. However, business expansion is more important because prices can only be raised only till a certain point.
Breaking the product down into smaller sizes is an excellent way to keep customers. As the price of the products falls.
Some characteristics of a long-term growth company include:
- Expensive as compared with stocks from other sectors.
- Long-term business viability, for example it’s not easy for a company like Nestle or a Colgate to go out of business.
- Generating free cash flow and low in capital expenditure as these companies throw back lots of cash dividends to its shareholders.
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