- Is the business simple, predictable, free-cash-flow generative, resilient, and sustainable?
- Does the business have strong profit-growth opportunities and/or scarcity value?
- Does the business have a moat around it?
- Is it a high quality business that can't blow up and should grow in value over time?
- Avoid energy and other cyclical businesses. Avoid healthcare because of the regulatory uncertainty.
- For shorts
- Is the company violating the law, has misleading/inaccurate reporting, or has a potential regulatory problem?