Just as any company should have a clear business/investment strategy, so too should we as investors in any business we invest in.
When I decided that I wanted to own a part of this business, there were numerous questions I asked myself prior to taking the plunge. Here are just a few...
1. I was looking for a business that I could fundamentally understand. Tick and always learning day to day.
2. I was looking for a business that had strong, sound management experience in their respective fields. Tick.
3. I was looking for a business that particularly had a strong recurring revenue model. Tick.
4. I was looking for a business that didn't have debt on its books. Tick.
5. I was looking for a business that had cash in the bank with potential to grow. Tick.
6. Part of my due dilligence on the company's business model was making sure they had significant funds in place, solid management team and partners onboard and most importantly, a clear and focused business strategy in place going forward for existing and future business opportunities. Tick.
7. I was looking for a business that was working diligently on improving its expenditure year to year. Tick.
8. I was looking for a business that could turn cash flow positive relatively quick. Tick.
9. I was looking for a business that had the potential for enourmous capital growth. Tick.
10. I was looking for a business that was extremely cheap to buy. Tick.
11. I was looking for a business that was 'business flexible' which also had enormous 'business leverage'. Tick.
12. I was looking for a business that already had strong, sound business relationships in place with its clients. Tick.
13. I was looking for a business that I could immediately see was improving its business year to year. Tick.
14. At this low end of the market, I knew my strategy required the utmost of patience to receive the most valuable long-term investment return. Was I prepared to sit tight through the day to day market volatility. You bet I was/am.
15. I was looking for a business that had the potential to move out of the 'low end' of the market over time. Perhaps I'm just biased, but believe this company is showing the potential to do so.
16. I was looking for a business that I was prepared to dedicate a few hours of my time a day towards research. Tick.
17. As part of my due diligence on the business, I understood that one part of the company's business objective was that it had an exit strategy/IPO in place. That was a big tick for me.
18. I was looking for a business that over the course of 5 years I believed could provide significant returns as an investment. Let's wait and see.
19. Did I understand that there were micro and macro-economic risks to consider with this investment? Yes. Had management put measures and strategies in place to address these challenges/risks? Yes they did and have continued to do so.
20. Did I understand that there were micro aspects to the business that needed improvement? Yes. Part of my due diligence was to understand what the company were working diligently towards. I have a better understanding of that now.
21. When conducting my due diligence on the business, did I think management had the experience to expand the business? Yes.
My belief in the business and in management remain strong.
All the best to you all.
Tony
TSN Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
