Two of the biggest questions, which are very difficult for some of these companies to answer, are potential TAM and the target market.
How big can that potential market be? What is the industry size? Try to gauge whether they are adding value. Are the people who are working for them happy working there?
Are they satisfying a particular customer set? The companies have to be efficient enough to make a decent ROE. Being a bull at heart, an optimist, that doesn't become a challenge for me.
There will be volatility. There will be challenges in between. I think that's part and parcel of any investment idea in the portfolio.
It's not only true for expensive or loss-making companies but even for value names. Businesses go through their own bad times.So, it's not only attached to very expensive, new-age, or loss-making companies; it's attached to every company which doesn't deliver.