What intrigues me most about the asset-class “Equity” can be described in two words.
The human being: capable of the highest but also the lowest.
So, while pinpointing which scrip to purchase, one avoids flawed human capital.
Humans have many flaws which one’s antennae are scanning for here. Some are corrupt. Some are bad planners. Some lack management skills. It’s a big list.
What one’s looking for is integrity. Also the power to anticipate in advance. Alone this trait in the management of a company can make it grow beyond inflation and slow-down. Managers with good anticipatory powers hedge against loss in the future. For example, a company that uses Silver in its manufacturing process could use up its yearly profit to buy Silver in bulk @ 40 $ an ounce rather than buy it one year later @ 80 $ an ounce.
Honest human capital is transparent. Share-holder friendly. And if you can see any intelligence along with such characteristics, just go for the scrip at a decent valuation.