It usually goes something like this: Starting broadly, I ask: What are the big macro trends impacting this company and its industry?
We will argue that this debate must be taken into account as you develop your investment thesis, but your thesis making should not be driven by this debate. This length restriction means you cannot fit a whole lot of ideas into the space provided.
The thesis further states that the investor plans to hold the stock for several years, during which he expects its price to rise and reflect its true worth.
As growth inevitably slows, Apple has built an army of lifelong customers who should prove to be a solid source of sustainable revenue over the long haul. Of course the company sells every car it makes and continues to be supply-limited, all on an advertising budget of zero.
For example, the stock chart below shows a quickly rising stock price, but that does not mean it is expensive. In order to determine how liquid a stock is, you need to see how many shares trade on a regular basis.
If so, what are the catalysts that will cause the Company to beat earnings e. The less liquid a stock is, the riskier the position becomes, as it is difficult to exit an illiquid position—especially during turbulent market conditions, when liquidity is often demanded.
Is the overall pie growing? With big plans for an affordable fully electric car to launch sometime in the next few years, the company is hedging its big bet by rapidly building a network of charging infrastructure to support long-distance travel.
In order to gain investment from one of our funds, a company needs to demonstrate the ability to grow and grow quickly.