Stock Picking

– First-class management with a proven record of keeping its word.
– Does innovative research and uses technology to maximum advantage.
– Operates abroad as well as at home. (Growth via overseas expansion)
– Sells products and services that don’t become obsolete.
– Insiders own a large chunk of shares and have a personal stake in the company’s success.
– Company deliver strong returns on innovator’s capital, and managers are committed to rewarding investors.
– Expenses are kept to a minimum, which makes the company a low-cost producer.
– Company enjoys a dominant or growing share in a growing market.
– Company is adept at acquiring competitors and making them profitable.
– Company has a strong balance sheet.

Shelby M. C. Davis – American investor and philanthropist, founder Davis Selected Advisers (born 1937), in a memo from May 22nd, 1997, quoted from “The Davis Dynasty: Fifty Years of Successful Investing on Wall Street” (2001)