- If the business doesn’t have engineering or branding problems.
- Always look at cashflows of small and mid companies
- This cashflow should generally be positive
- Cashflow should be a sum of cash from operating activity and cash from investing activity
- Industry growth rate of core products should be high
- Understand the story behind the numbers
- Price volatility will be high and its okay
- No red flags on investor holding
- Understand how the company makes money
- Why can the firm grow?