Stock Requirements
Buddha Fundamentals
| Karma Business | Score | |
| Buddha sectors |
A sector that actively provides good to the world. |
1 |
| Buddha solutions | Is the company actively trying to better the world in some way. | 1 |
| Karma management | ||
| Good CEO | Honest and open CEO with no prior controversies. | 2 |
| Good management | Upper management should be a reflection of the CEO. | 1 |
| No controversies | No tax evasions, mass layoffs other scummy dealings to inflate profits. | 1 |
| Good ESG rating | They should try to be as less damaging to the world. | 1 |
| Happy employees | Reviews and other metrics to determine the work culture. | 1 |
| Charity contributions | Do they donate, contribute or organize charitable events? | 1 |
Value Fundamentals
| Valuation | Score | |
| P/E < avg | Shows its not to overvalued | 2 |
| D/E < avg | Shows it has less debt then is normal | 2 |
| DCF | Has a positive DCF valuation | 2 |
| Business | ||
| Small-Mid cap | Mostly mid-caps, in extreme cases we can invest in small-caps but fundamentals and outlook would have to be amazing. | 1 |
| Growth sector | Can be things that are still in development today but can have a great market share in the future. Tech related most likely. | 1 |
| Good business model | Either a proven way of doing business that works or a new way of doing business that can work. | 1 |
| Good Credit Rating | Look how good their current debt is, will also show how much the banks see them as a safe bet. | 1 |
| Has a Moat | Something unique or advantage against it competitors. | 2 |
| insider buys | Does the stock have any significant insider buys. Also look that they havent sold more then they bought. Selling in general is less important. People sell for various reasons, only buy for one reason. | 1 |
| Earning Growth | Past earnings and estimate growth, not if same or close to same. | 2 |
| Has a product | Having something to sell other then providing a service provides more growth opportunities and is more scalable. | 1 |
| Evolvable product | Companies that could possibly evolve more into other products that are related to its current products. eg. a store scanning technology can turn into a fully automated scanning robot |
1 |
| Multi-sector use | Companies that can be implemented in multiple industries (semiconductors > robots, ai, hosting, EV,…) | 2 |
Technical (optional)
| Technical | Score | |
| Volume Growth | Volume needs to have increased recently, showing there is an interest in the stock. Spikes in the past is also a plus. | 1 |
| Outperforms S&P | 1 | |
| No Dip on Market | Stock didn’t dip as much as when the market did a big dip. | 2 |
| Step-box pattern | Solid upward trend, ideally in a Darvas-box pattern. | 2 |
Sectors
| Karma sectors | Buddha Stocks | ||
| Food | Farms | ||
| Plant based ingredients | |||
| Plant based packaged food products | |||
| Plant based restaurants | |||
| Tech | Data & Identity protection | ||
| Pharma | Pharmaceuticals / Medicine | Specific medicine that is good, none addictive, none cosmetic. | |
| Animal medicines | |||
| Medical supplies | bags, needles, tubes, … | ||
| Nursing homes | REITS for nursing homes etc | ||
| Retail | Healthy food retailers | Healthy foods, not bulk stores (to much waste) | |
| Energy | Renewable energy | Look what is the cleanest energy. Wind and solar is not always better then nuclear. ° wind energy seems the best (less space needed, farmers can still farm, …) |
|
| Waste management | |||
| Consumer Defensive | Personal Care | non toxic, natural, non-cruel personal care products | |
| Industrial | —- | ||
| Real-estate / REITs | REIT – Residential – low-mid income | ||
| Construction – low-mid income housing | |||
| BAD Sectors (not karma) | ||
| Alcohol | ||
| Tobacco | ||
| Weapons | ||
| Bio-tech / Pharma | Bad drugs | opioids etc, highly addictive stuff, cosmetic drugs (ala loose weight) |
| Oil and gas | ||
| REITs | expensive homes | expensive mansions, expensive flats, … |
| not sure yet, do research | ||
| Insurance? | ||