Mayur’s Investment Criteria

Investing in stock marketing is about three things: Education, Discipline & Patience!

Anyone can invest in the stock market. That does not mean, everybody should.

Below is my investment criteria:

  • Net Profit Margin > 15%.
  • Revenues over the past 10 years are growing consistently. Not stagnant, but growing.
  • Earnings per share (EPS) should be positive and growing consistently over the past 10 years.
  • Debt to Equity levels should be low or none.
  • Retained Earnings should be positive and growing consistently over the past 10 years.
  • Number of shares issued should to be consistent over the past 10 years.
  • Price to Earnings (PE) Ratio should be under 10. Even better if under 5. Avoid if negative.
  • Market Cap is equal to or less than 1.5 times it’s tangible book value.
  • The company is going through a temporary problem, or the company’s stock is down because the sector or market as a whole is down, not because there’s anything wrong with the business.

Note: The stock has to meet every single one of these criteria for me to invest in it. No exceptions.

This criteria excludes 95% of the stocks on the market. But that’s where the fun is … finding the needle in the haystack. All this investment criteria does is tells me what the needle I am looking for, looks like.

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