I have been thinking what kind of companies should I put my money in. Here is a small checklist...
1. Should have a product that caters to a large chunk of population. (Why not niche markets? Afterall, a brand can command a premium in niche markets?)
2. The market should be growing. (For obvious reasons)
3. The market should not be crowded with competition. At max three players in the market.
4. Barriers to entry should be high. The company should not be susceptible to competition from fly-by-night operators.
5. It should have a huge brand name. I dont know how to quantify brand names but it should be easily recognizable and trusted by its customers.
Obviously price is still the most important factor in the buy decision.
Need to put a lot of thought before I can finalize the checklist. Can anyone point out flaws?