1. Position Limits
No More Than 25k in a single stock.This is a very strict rule which need to be followed; No amount of promise of stock can break this rule.
2. All these Orders Are Placed On entry-- 10k is your current market.
- 15k buy order @ 25% less than the 1st buy.
3. Holding Period
- Minimum of 1 year.
- This is a strict rule, no amount of valuation will let you change your rule.
Stock Selection Checklist-
1. Working Capital Trend or NPA\NPL trend positive.
2. Discount to Tangible Book Value
3. Percent away from 52 week lows
4. Business should be #1, #2 or #3 in market share.
5. Power of customer should not be huge.
