Greatest investors' manifesto: Do you have it in you?

It took a long time for you to wait for something...waited for someone... faced rejection... had failure!!! 

You spent your time in dilemma backed by the famous Hamlet-ian indecision:

“To be, or not to be: that is the question:
Whether 'tis nobler in the mind to suffer
The slings and arrows of outrageous fortune,
Or to take arms against a sea of troubles,
And by opposing end them? To die: to sleep;
No more;.." [William Shakespeare, Hamlet]

Let us today come out of stupor, inertia or 'drowsy numbness' !!!

Let us decide ,today, right, today, whether we have it in us or whether we pass our lives in abject misery!!!

Enough of  mediocrity.

Let us be successful. Let us follow greatness;let us achieve something to move on ...on ..make window for next generation to avoid cut-throat existence!!

Parents sacrifice!! If you are a father or a mother then sacrifice well and within your circle of competence.

So far I had talked about being a layman and about investments. Now consider yourself a part of the start-up.

Learn!!! Learn from the most successful investors in the world!!!

Learn from them how to choose the best stocks and remain invested for a long...long long time!!!

ALWAYS REMEMBER THAT  BY OWNING A STOCK YOU OWN A  PART OF BUSINESS!! WILL YOU SELL YOUR SUCCESSFUL BUSINESS? THE ANSWER IS NO!!!

Her is what you should do. 

These rules are part of the most successful investors' manifesto.

SO...

SUCCESSFUL INVESTOR MANIFESTO:

1. Is the P/B(price/book)  ratio between 1-1.5?

2.Is the P/E(price/earnings) ratio below 15?

3. Is the ROE(Return on Equity) above 14?

4. Is it a cash rich company?

5.Is it a debt-free company?

6.Is it a regular dividend paying company?

7.Is there a regular increase in sales(Top line)?

8. Is there a regular increase in net profit?

9.Does the company have an excellent management?

10. Does the company produce sustainable products( will the company exist for next 20 years)?

11.Is it a  niche company?

12. Does the company have a reasonable competitive advantage over others?

13. Do you understand the business model?

14.Are you ready to stay within the circle of your competence?

15.Is the business simple and easy to understand?

16. Is the company cyclical or asset based or defensive or growth company?

17.Does the company has a reasonably good CAGR ( Compound Annual Growth Rate) ?

Most importantly how much risk appetite do you have?  If you are ready to stomach a reduction of 50-60% of your assets in a certain period of  economic downturn then be part of the equity markets!! Or if you are not ready to take the risk, it is better not to be adventurous in Equity markets!!!