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Analytical process
A systematic model that integrates data analysis, forecasting, and valuation techniques. It enables consistent, evidence-based financial decisions.
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We can also say this is our Decision making framework
Money Stories GRWTH Cycle
The Money Stories GRWTH Cycle is the starting point to our investment process. It has five seemingly simple steps which are simultaneously occurring throughout the investment cycle.
Risk Management
At Money stories, we are mindful of the risks embedded in our investee business & investment approach but we don’t define risk purely through the lens of volatility.
We take a holistic approach, proactively identifying, monitoring & mitigating risks across dimensions.
Red Flag Identification
Industry Landscape
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Reliant on government incentives.
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Concentration risk exposure.
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Unfavourable position in the business cycle.
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Industry growth relative to GDP.
Poor Capital Management
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Unreliable growth guidance.
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Unexplained decline in promoter holdings.
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Inadequate corporate governance structure.
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Excessive Related Party Transactions.
Management
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Expansions that boost size but not shareholder value.
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Declining margins due to poor cost management.
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Over-leveraging and equity dilution.
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Sustained negative cash flows.
Business Related
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Unfocused business model.
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Inconsistent & insufficient revenue sources.
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Declining market share.
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High Customer Concentration.
Financial Red flags
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Aggressive revenue recognition.
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Inconsistent expense capitalisations.
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High share of intangibles.
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Low profit to cash flow conversion.
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