Friday, March 19, 2010

Inclusion / Exclusion criteria for the stocks in a portfolio

This section contains the inclusion / exclusion criteria for picking stocks. If any of the answers to the below question is 'NO' the stock should not be bought as a long term investment

1. Does the stock belong to the F&O category?
2. Is the PE ratio of the scrip less than 22?
3. Is the company reporting consistent increase in earnings in at least 5 of the last 7 years with no losses in the last two years?
4. Is the buying capital for the scrip less than or equal to 20% of the total capital for long term fundamental investing?

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