Sunday, June 15, 2008
Targeting Business and Stock Segments-Part 3 of 5
Business and stock investing can be like sports: you must know the rules and keep the goal-posts in view.
This is why Standards are S2 of 4.
Profit, stock price, growth, and dividends are secular measures, but they do not suffice for targeting.
Investors and executives should set additional standards which are relevant for their targeted business segments. One can find these from the Key Factors for Success that drive an industry.
Brands, peak production capacities, excellence in logistics, sourcing moats, and credit-appraisal, are some examples of standards that facilitate sharp targeting.
Standards are more qualitative than a set of numbers alone. However, they can be specified tightly, for group review and records.
Please post below or email StockWay.MyView@gmail.com with your views and issues on standards for targeting.
We will move on to Systems tomorrow.
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