It’s not enough for a company to be growing. We have to be convinced that it possesses a sufficient competitive advantage such as lower cost structure, limited competition or unique knowledge, process or patents.
A Single Mission- Shaker Investments
We are most comfortable when management is focused on a single, well-defined business.
Many Customers, many Products- Shaker Investments
We prefer a diversified customer base and a multi-product line, so that a company is not left excessively vulnerable to several key buyers or to a limited number of product offerings.
We’re attracted to growth companies that maintain a conservative balance sheet with significant cash positions and strong free cash flow.
Significant Insider Ownership- Shaker Investments
We’re pleased when management owns a significant portion of a company. This virtually assures that management’s interests are closely aligned with
Strong Management- Shaker Investments
We spend considerable time talking to management. We seek to be convinced that senior managers have formed a coherent team and are collectively prepared to respond to marketplace challenges in a timely and creative manner.
Dominant Market Leadership- Shaker Investments
More often than not, strong companies get stronger at the expense of the weak. We want a company that is growing market share and is dominant in a product or service niche.
Development of New Products & Services- Shaker Investments
We’re attracted to companies that place a significant emphasis on research and development, and are consistently bringing innovative products and feature refinements to market.
Praised By Customers & Competitors- Shaker Investments
Over time, those companies that are recognized by customers as being “the best at meeting their needs” generally prosper far more than companies with less customer focus.
Positive Earnings & Cash Flow- Shaker Investments
We’re hesitant to invest in a company that depends heavily upon external equity capital to remain in business. We seek management teams that are extremely focused on creating a level of earnings and/or cash flow that can support ambitious growth plans.