A systematic approach to analyzing companies using objective criteria.
Building wealth is not about finding the next hot stock or timing the market. It's about consistently applying objective criteria and giving your ownership time to compound.
The STACK framework is our systematic way to analyze companies. It's not a magic formula—it's common sense applied consistently.
Each question flows naturally from the previous one. All five must be answered positively.
Consistent profits over the years
Is this business consistently profitable? A company that can't make money consistently isn't a business—it's a gamble. We look for sustained profitability to filter out turnarounds and speculative ventures.
Positive operating cash flow
Is the profit backed by real money? Accounting profits can be creative. Cash is real. A company might report profits while bleeding cash—that's a red flag. Consistent positive cash flow proves the business model actually works.
Controlled debt levels
Is the balance sheet solid? Debt is the silent killer of businesses. Companies with manageable debt can survive recessions, take advantage of opportunities, and let you sleep well at night.
Strong returns on capital
Does management create value from shareholder capital? Strong returns show management uses your money effectively—not just surviving, but thriving.
Proven track record
Has time tested this company? We need history to analyze. Companies that have weathered different market conditions, published audited financials, and built a track record we can study.
The STACK framework won't find you ten-baggers or the next Amazon. It will help you avoid disasters and build a Holding that compounds wealth over decades.
This framework is designed for investors who:
STACK is not investment advice. It's a framework for analysis. Companies that pass all criteria may still lose money, and companies that fail might outperform. Past performance does not guarantee future results. Always do your own research and consider consulting a financial advisor.