For this edition I once again asked my followers on twitter to select one of three stocks, and Inwido was the winner. So here’s my write-up on Inwido, enjoy! Business Inwido is a Swedish company that offer windows, doors, and related products. They are active in most of Europe, but Scandinavia is the largest and most important geography. About 55% of revenue comes from Scandinavia, which is operated under brands such as Elitfönster, Hajom, Diplomat, KPK, Outline, and Lyssand-Frekhaug.
From Geoff on Focused Compounding, I have learnt to pay attention to the bargaining power the business has with the parties involved (and that is how I judge how well I understand the business). As well as the positioning of the business in it's industry (how much change occurs - how often market share changes, etc).
Do you think of stuff like this in the background as well?
When you think of risk/reward. Is this what you mean?
Risk
I assume by risk you mean permanent loss of capital or not losing much if things do not go well for the business. So I guess Scenario 2 at worst hopefully.
Reward
Your reward would be 6% dividend yield and 4% growth (also maybe re-rating?)?
From Geoff on Focused Compounding, I have learnt to pay attention to the bargaining power the business has with the parties involved (and that is how I judge how well I understand the business). As well as the positioning of the business in it's industry (how much change occurs - how often market share changes, etc).
Do you think of stuff like this in the background as well?
Thank you for sharing your work.
When you think of risk/reward. Is this what you mean?
Risk
I assume by risk you mean permanent loss of capital or not losing much if things do not go well for the business. So I guess Scenario 2 at worst hopefully.
Reward
Your reward would be 6% dividend yield and 4% growth (also maybe re-rating?)?