A very important characteristic I look for is a strong leadership team that has industry experience and understands the market they are in. Founder trust and transparency is the first key into a strong partnership so o find that most important before diving into due diligence.
One of the most important factors besides the company's financial statements is whether it has a moat that will protect it from other companies that decide to enter the same market. Otherwise, even if the company is currently successful, other companies will enter its market once they see the opportunity.
As a real estate investor, one characteristic I look for is square footage. The bigger the house, the better. Here's why: Since I rent out my properties to students on a per-room basis (rather than renting an entire property to one person), I earn more for every bedroom I add.
When considering investment opportunities, I prioritise strong and sustainable competitive advantage, commonly known as ‘moat.’ For a significant competitive advantage, a company must have unique features that are hard to copy or surpass by its rivals, safeguarding its future profitability. Why is this characteristic crucial? By having a sustainable competitive advantage, firms can be protected against rival threats and changes in the market that usually lead to profit erosion. Strong moats help companies retain their market share, come what may, and maintain their prices. They thus ensure steady profits every year, even amid tough economic times. A robust corporate-level strategy also implies that a corporation has invested in valuable intangible assets such as brands, copyrights, and networks, which serve as entry barriers for newcomers. It suggests that the corporation has growth potential and presents an attractive investment opportunity.