Value Educator Description
We at value educator involved in in-depth research of various listed companies with focus on micro and small caps which are currently at their growth stage
During the last decade we have worked hard to develop our investment framework which is the outcome of our collective understanding on various investment styles followed by different successful investors.
Following are the brief points on our investment framework
High Quality Business
> Preferably low working capital or negative cash conversion cycle business which don't need short term working capital debt
> High Operating Cash Flows to EBITDA convection. It shows business have ability to generate the cash and cash is not stuck in receivables or inventory
> Asset light business model
> High growth in Profits from reinvestment of internal accruals at higher rate. [Low equity dilution and Low to moderate long term debt profile]
> Preferably B2C branded business with pricing power
High Quality Management
> Shareholder friendly management with track record of decent capital allocation. As Warren Buffet says "We are looking for three things, generally, in a person: intelligence, energy, and integrity. And if they don't have the last one, don't even bother with the first two”
Valuation
> High growth opportunities with Low entry valuations and PE rerating creates massive wealth !
> Growth in profitability depends on
a. Operating Leverage
b. Better Revenue Mix
During the last decade we have worked hard to develop our investment framework which is the outcome of our collective understanding on various investment styles followed by different successful investors.
Following are the brief points on our investment framework
High Quality Business
> Preferably low working capital or negative cash conversion cycle business which don't need short term working capital debt
> High Operating Cash Flows to EBITDA convection. It shows business have ability to generate the cash and cash is not stuck in receivables or inventory
> Asset light business model
> High growth in Profits from reinvestment of internal accruals at higher rate. [Low equity dilution and Low to moderate long term debt profile]
> Preferably B2C branded business with pricing power
High Quality Management
> Shareholder friendly management with track record of decent capital allocation. As Warren Buffet says "We are looking for three things, generally, in a person: intelligence, energy, and integrity. And if they don't have the last one, don't even bother with the first two”
Valuation
> High growth opportunities with Low entry valuations and PE rerating creates massive wealth !
> Growth in profitability depends on
a. Operating Leverage
b. Better Revenue Mix
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