Investment Checklist

Discussion in 'Investing' started by George Traganidas, Apr 16, 2023.

  1. George Traganidas

    George Traganidas New Member

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    Warren Buffett and Charlie Munger are well-known investors who have long emphasised the importance of careful analysis of the underlying business in the world of investing. Warren has stated that investors should be able to explain the reasons behind their investment decisions in a clear and concise manner, and that they should think carefully before committing their capital.

    Charlie Munger, Buffett's long-time partner and friend, has also emphasised the importance of checklists in the investment process. He has noted that a well-constructed checklist can help investors avoid costly mistakes and ensure that all relevant factors have been considered before deciding.

    Do you use a checklist to help you with your investment process? Many investors find them useful to help avoid mistakes. I started to build one a few years ago and I compiled it into a short document.

    You can get a copy of it here.

    Checklist.
     
    #1 George Traganidas, Apr 16, 2023
    Last edited: Apr 17, 2023
    TomB16 likes this.
  2. TomB16

    TomB16 Well-Known Member

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    Hi George. Nice thread idea.

    I use a bunch of checklists when I am researching a company and have for years. The checklists have not changed in the last decade, or so.

    My checklist would be useless to other people. It represents my personal view on selection criteria.

    For that matter, Buffett and Munger's checklists wouldn't be helpful to me, although I'd like to see them because I admire those guys.
     
  3. TomB16

    TomB16 Well-Known Member

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    One of the things I look for is honest management.

    To that end, I used to look for record setting executive compensation in 2009. If bonuses were higher than 2008, I knew management was not respectful of the owners.

    From what I can tell, the vast majority of management teams will consume the bulk of profit and leave very little for the people who own the company. Because of this, I look very closely at this metric.

    So, yeah, that's in one of my check lists.
     
    #3 TomB16, Apr 16, 2023
    Last edited: Apr 17, 2023
  4. George Traganidas

    George Traganidas New Member

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    You are right. Every person's checklist should be tailored to their investment approach and style. I am always keen though to see other people's lists and see what is their style. I have found points that others look at and I have added over time in my list. This is an on going process.

    You can get a copy of it here to see if it has anything useful for you.

    Checklist.

    Feel free to share it with others if you want.

    George
     
    #4 George Traganidas, Apr 17, 2023
    Last edited: Apr 17, 2023

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