Investing Philosophy

I have a what many professionals might consider a simple approach to investments and what a novice might say is overly complex.

One overarching theme in what I invest in is "does it make money?" Why would I want to own a company that is losing money? Before the comments come pouring in about growth companies, I should clarify that there are always exceptions to a rule; but I think this a good metric to keep in the forefront for any potential investment.

The next thing is if I understand the business. Not the everyday execution and management team, but the core of what they are doing to make money. For example, Coca-Cola makes beverages (amongst other things). The point is the product and process for making money is understood. If I can't tell how a company is making money after a couple minutes on their website I am probably not interested in owning that company.

Later I will offer specific steps I have taken.