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lack box Investing

If you are like me who grow up on a subcontinent then you are not alien to the idea of seeing your grandmother have a mystery box. you need money for the candy ? You go to your grandmother and she digs into her mystery box. You have a big expense ?  Guess where the money comes from the “Mystery box”. We end up calling it a “Treasure box”. It had the money for all occasions. And only she would have control over it. A few years ago I thought of this same concept for our investments. Only this time. We will not open this mystery box for at least 5 years. So the idea is to buy Stocks and store them in this black Box ( Metaphor for Holding them ).

You visualize that you have stocks in the black box. You buy the stock and lock the safe.

1. What stock qualifies for our Black Box investment?

Glad you asked. We have strict criteria for considering this as a long-term investment.  We will be discussing them point by point below.

• The stock should itself be Halal 

( We will not Buy anything in the Liquor, Marijuana, Banking, Finance, Gaming, Casino industry ). That also goes for all stocks that are recommended on my website. It goes without saying that our only focus is generating halal wealth. So we will not be touching sectors that are gray.There are plenty of other good opportunities.

•  The stock should not be an OTC stock.

We will not be investing in any OTC stock. No matter how good it looks.  If that is your style of investment and it has worked for you. So be it  But they have not worked for me and they are too volatile. I will completely avoid any OTC stock on my website. ( Unless I have a very compelling reason to do so).

A lot of growth comes from relatively small companies. We are trying to invest in companies that will grow exponentially in the next few years. So we will look out for Small to Mid cap. But if we find a disruptive technology that a large cap is about to implement. We will consider large cap.

• The sector that is going to be expanding in the next few years.

We are looking for a Netflix in the world of BlockBuster. We are looking for companies whose businesses can grow exponentially larger than they are today. We are looking for a sector that is potentially going to explode in the next 5 years. ( Metaverse, 5G, Health care Etc).

• Best potential for Growth 

The company has to be somewhat profitable today to be highly profitable in the next few years. We are not looking to invest in startups. If the company is not profitable then it must either have a margin structure or business model that provides a clean pathway to profitability at scale. If they are not profitable they need to have enough capital to reach profitability without raising a lot of equity. No magical numbers of the future.

• Stable , committed , trustworthy and transparent management 

This is very important

• The company should be spending money on research and Products.
• The company should be commited, Have a vision and be transparent in their dealings.
• The company should also be winning big contracts or atleast  integrating with Big growth companies for there deliveries.

So إن شاء الله Lets get started in this journey together.

Feel free to write your comments. If you want me to look into a any company.