Management must demonstrate a track record for scaling companies or introducing a product to the marketplace. My research team must give management a letter grade to compare to the top 5 in the industry in their performance.
Reinvestment of management’s capital
I look at the company’s willingness to invest its own money back into the business. This is a sign that management believes in the business. I believe if people invest in themselves, that is a sign of commitment and focus that bodes well for a company.
Triple digit growth
While many investors might settle for double digit growth, I look for companies that target and are not afraid to reach for triple digit growth.
Industry growth standards
Industry analysis can help a company identify both the opportunities and threats coming their way and give them a strong idea of the present and future scenario of the industry. The key to surviving is to understand the differences between yourself and your competitors in the industry and use it to your full advantage. Knowing how well competitors perform is key to your own victory.
These four pillars come into play when we select any company to be featured in Solomon’s Picks. A space where you can locate current companies that I personally see excelling in the four pillars of sustainability and growth.