{"id":142,"date":"2009-05-20T10:41:02","date_gmt":"2009-05-20T05:11:02","guid":{"rendered":"http:\/\/idostocksmyself.wordpress.com\/?p=13"},"modified":"2020-03-02T17:31:09","modified_gmt":"2020-03-02T12:01:09","slug":"which-qualitative-aspects-to-consider-while-analysing-a-company","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/which-qualitative-aspects-to-consider-while-analysing-a-company\/","title":{"rendered":"Which qualitative aspects to consider while analysing a Company?"},"content":{"rendered":"

After reading this book by Philip A. Fisher – Common Stocks And Uncommon Profits<\/a> I came across some of the important qualitative aspects that need to be kept in mind\u00a0 while analysing a company<\/a>.<\/p>\n

Lets see what some of them are:<\/p>\n

1) Marketing & Advertising Efforts:<\/strong><\/span><\/p>\n

The marketing<\/a> team of a company should always be aware & ready to adapt to the changing desires of customers.The marketing & advertising activities should be targeted towards the right market. The efforts should bring out worthwhile results.<\/p>\n

Also, the company should supply what is desired today & not what was desired earlier.\u00a0 For example- if a company’s marketing efforts are being wasted in selling & producing better typewriters rather than shifting to the new technology of computers, it is a waste.<\/p>\n

2) Research & Development<\/a> Activities and Technical-Know-How:<\/span><\/strong><\/p>\n

Indian companies were not into Research & Development activities till some time back, but now, industries like Pharma & Automobiles have put their step forward.\u00a0 For\u00a0 example, Tata Motors<\/a> has 2 research centres at Jamshedpur<\/a> & Pune<\/a> where it carries out all its research & testing activities.The important point that has to be taken care of here is that the research\/ technical know how activites ahould have a positive outcome either in way of an inovative product\/service or a profitable return on the amount of time & expense spent on the activities.<\/p>\n

Now, where do you find the R & D expenses of a company? R & D expenses are capitalized and hence one can find this under the assets heading in a balance sheet<\/a> of a company.<\/p>\n

3) A Strong & Efficient Management Team:<\/strong><\/span><\/p>\n

A company should be led by a strong & able leader, along with a well coordinated team of members. All the employees ( even the ones at the lower level) should be involved and should be aware of all the decisions & happenings in the organisation. In this way the employees at the lower levels can be attracted & further trained for larger responsibilities. All the team members should have an entrepreneurial spirit inbuilt. This is a slightly difficult aspect to folloe, but one can always read the annual reports & other news & press releases & get an idea about the management.<\/p>\n

Also track the company’s objectives & policies. Are these objecives personally rooted or for the shareholders? Are they formed keeing a short term or long term view in mind? The company’s whose objectives are for the benefitof the shareholders & keep the long term in perspective. A company that only announces its short term objectives is just trying to show a rosy picture for the moment.<\/p>\n

4) Law of Leadership:<\/strong><\/span><\/p>\n

You should always try to track a company which is the leader of the product\/service in the market. A company that gets in first with a product\/service, tends to be a leader always & holds a higher market share<\/a>. Such a company always has a higher profit margin<\/a>.<\/p>\n

The next company that comes into competition will always hold a lower market share. Hence, track companies following this leadership attribute.<\/p>\n

5) Adapt To Change: <\/strong><\/span><\/p>\n

Companies should realize that the current market will not remain the same & it is changing at a very fast pace. It has to understand & adapt to this change in all areas which could be even the processes they follow or the products they launch. They need to realize that just because a product\/process\/technology has worked in the past, it is not necessar it will work again.<\/p>\n

These are few of the qualitative aspects to be considered…..<\/p>\n

If you liked what you read and would like to put it in to practice Register at MoneyWorks4me.com<\/a>. You will get amazing FREE features that will enable you to invest in Stocks and Mutual Funds the right way.<\/p>\n

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After reading this book by Philip A. Fisher – Common Stocks And Uncommon Profits I came across some of the important qualitative aspects that need to be kept in mind\u00a0 while analysing a company. Lets see what some of them are: 1) Marketing & Advertising Efforts: The marketing team of a company should always be […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1152,1151],"tags":[17,24,56,86],"modified_by":"MoneyWorks4me","_links":{"self":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/142"}],"collection":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/comments?post=142"}],"version-history":[{"count":0,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/142\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media?parent=142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/categories?post=142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/tags?post=142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}