Successful investors use a disciplined approach to picking stocks, and checklists can be a great way to make sure you’ve covered all the bases.
In this series I’m subjecting companies to scrutiny under five headings: prospects, performance, management, safety and valuation. How does Direct Line (LSE: DLG) measure up?
90% of Direct Line’s business is in the UK. It is the market leader in UK motor and home insurance, with just under 20% market share, but the sector is highly price-competitive, driven by price-comparison websites.
Premiums follow a cyclical pattern. Even so, this year is expected to be…