Investment strategy

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1. Does the company have potential to increase sales at least several times in the next 5-10 years?

Growth is important. The company must be in an attractive industry with large growth ahead or it must be taking market share from competitors. High return on invested capital is crucial as well, as shareholders must benefit eventually from the captured opportunity.

2. Does management have unquestionable integrity and a sizable stake in the business?

Management is responsible for the direction of the business and its eventual success or failure. The interests of stockholders and managers must be aligned and management must be honest and have "skin in the game".

3. Is the stock selling for a price that is below its intrinsic value thus offering a reasonable margin of safety?

Even the best business in the world might be a terrible investment if bought for a very high price. The valuation of the company has to be low in comparison to future cash flows it will generate. 

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These are the three main pillars of my strategy. If any one of them is missing, I do not buy the stock. If a company these criteria I perform a thorough analysis on their industry, competitors, management and suppliers. I am looking for companies with strong growth, high returns on equity and low debt.