Compounding your capital is a far easier task to undertake if you don’t have to start by recouping your losses. In 2015 successful investing has been as much about avoiding the bombs as it has been about picking winners. For example an equal weight holding in the 5 worst performing ASX300 stocks (BKN, SGH, DSH, MRM, HIL) for CY15 would have seen capital losses to the tune of 82% year to date. Needless to say those holding these names have a substantial job in making up lost ground. With this in mind Livewire reached out to fund managers to address a few questions on avoiding value traps and protecting capital. In this series we ask each contributor to share what they believe is the single most important indicator of company health. Responses come from Justin Braitling, Matt Haupt, Chris Prunty and Simon Bonouvrie.