1 Dividend growth
Craigs had a strong income focus and liked stocks that provided a solid dividend and had the potential to grow that dividend.
"Our rationale is based on the growing evidence that shows that these stocks deliver higher total returns over the long-term."
2 Strong balance sheet
As Warren Buffet had often said, companies without debt could not go bankrupt.
In general terms, Craigs preferred to see lower debt levels.
Excessive debt left a company vulnerable to a downturn in the economy, falling earnings or a tightening of financial conditions.
As seen during the financial crisis of last year, company debt levels very quickly became the top issue with investors.
It would be short-sighted to avoid any company simply because it had some debt.
Employing debt (or gearing) into a business was often an efficient use of capital.
As long as the debt level was maintained at a prudent level relative to assets and earnings, debt should not be a problem.
3 Competitive advantage
Companies with a strong market position and a distinct and defendable competitive advantage were well positioned to deliver earnings growth.
High and growing profit margins, along with a solid return on equity and assets are a signs of a company with a competitive edge.
Larger companies have an obvious advantage in terms of scale and financial strength over new, smaller competitors.
Craigs preferred larger companies.
4 Leadership
"This one is tough to measure in a spreadsheet but the quality, experience and integrity of a company's management and board of directors is a very important element that must be taken into account when weighing up the investment merits of a stock."
5 Quality assets
While Craigs did not prescribe to the methodology of only buying companies trading at a discount to asset backing, the broker did prefer companies that owned high quality, even "strategic" assets.
6 Growth potential
There was little point in buying a stock that had no growth potential.
Investing in shares involved risk. The payback for that risk was growth. Without growth, an investment became a bond.
7 Cash generation
Cash flow was important so it warranted its own paragraph. Cash was a company's lifeblood.
So much so, that Craigs' analysts valued companies by estimating not earnings, but the future value of the cash flow the company could be expected to generate in the future.
Many analysts believed the cash flow statement was more important than the profit and loss.
"We like to see companies generating operating cash flow that is close to, or exceeds, net earnings."
8 Quality and defensiveness
Craigs recommended the core of a stock portfolio - perhaps three-quarters of it - was made up of defensive, high quality stocks.
Smaller companies and higher risk stocks should constitute only a modest proportion of a portfolio.
It was not an exact science and in large part came down to common sense.
9 Value
Value was immensely important. In fact, none of the previous points mattered if a company was trading on a ridiculous valuation.
Even the best company could become a terrible investment if the entry price paid was too high.
10 Portfolio fit
A company must fit an investor's portfolio.
It must add another layer of diversification in that it was listed in another market, involved in a different sector or had exposure to a new geography, currency, market or theme.
It was risky to have a stock portfolio that was heavily concentrated in one market, one sector or was made up of one sort of stock.
Stocks to avoid: "We tend to avoid stocks that don't meet the criteria listed earlier. Companies that have a track record of disappointing the market are also treated warily. Those that face the risk of more regulation from the Government also warrant care."
Stocks that were not yet profitable, or traded on very high price-earnings ratios should be regarded as niche holdings, at best.
Excessive debt also raised the risk profile of the stock.
A company that had saturated its market and was considering higher-risk growth strategies, such as expanding overseas, should also be treated with caution.
