Every investor needs just two things to evaluate a potential investment: the right questions and the tools to answer those questions. Below are examples from Upholdings that we use to deliver market-beating returns.

Our Eight Questions:

  • Does the company compete in a large market with a defensible position?

  • Are the staff talented and motivated to keep growing with the company?

  • Do the products lead their category in global markets?

  • Is leadership actively considering societal impacts from their expansion?

  • What low-cost marketing channels are available to access customers?

  • Does the company transact profitably with all customers?

  • How does the team transform profits into shareholder value?

  • Are shares available at a clear discount to the company’s potential?

Company-released financial statements and reports are an excellent place to start. But to figure out if it’s a once-in-a-lifetime investment, we have to go a step further.

Alternative Data Sources:

With modern tools, we can use a whole lot more than company-released statistics to evaluate investments. Here are some examples:

  • LinkedIn Premium: see the number of employees by function at a company. Are they hiring salespeople to grow revenue, or hiring engineers to invest in new products?

  • appfigures: track the number of ratings that apps are receiving each month in the Apple and Android stores. How popular is the app and are its ratings improving over time?

  • Seeking Alpha: read management transcripts from conferences and quarterly calls to see how insiders are running the company. Are they prioritizing the right growth initiatives?

  • Former Employees: connect with someone on LinkedIn that works in the same industry as your target investment. What do they think about the business?

  • Google Alerts: receive a daily digest on all the news around a specific company. Are customers raving or complaining about it? How do world events affect the business?

The web has made it easier than ever to find answers. After you find a great company, the next challenge is to be patient enough to wait for the market to offer a price that just can’t be beat.

About Upholdings

Upholdings is built for the next generation of investors. We manage a concentrated portfolio of the best public and private growth companies profitably reshaping big industries.