4 Criteria to choose stock based on warren way.
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1. Understand the business
2. Enduring the competitive advantages
3. Able to trust management
4. Margin of safety.




Main Criteria to choose the stock
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Performance 

1. Company performance in the last 5 years.
2. Investment return %
3. Debt Management
4. Return on working capital
5. Return on Asset
6. Return on Equity


Balance sheet

1. Cash holding
2. Rate of growth.
3.Asset Growth
4. Cash generation capability.


Management 
Who owns the company.
Is management honest/ accept mistakes ?
Is management do what they promise ?

 
Competition-Moat.
How competitive is the company.
New product /services



Stock Valuation in Market

Is it cheaper or Expensive.



Brand Value
Is it brand /quality value ?

Multiple source of Income in company
Does it has multiple source of revenue or single revenue  ?


Baseline from industry.
Get a baseline of good and successful company and compare with other companies to evaluate the ratio.

Cause to grow/generate income.
Look for the upcoming investment/events which can generate more revenue.

History Similar Events 
Look for history events /solution for bankruptcy/restructuring/Debt/interest hikes.


Types of stocks

1) Values : 
2) Cyclicals :
3)Turnaround :
4) Price arbitrage :


Causes of selling :

1) small portion of profit
2) frustration 
3) sell one stock to buy another.
4) Characteristic change in company.