Investment Philosophy

Two Key Checklist Items

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I am not a big fan of going through specific “checklist” items one by one when evaluating an investment idea. I know this idea has gained enormous popularity in recent years, partly due to the good book The Checklist Manifesto, and partly popularized in value investing circles by Mohnish Pabrai. I respect Mohnish a lot, and I think his idea of evaluating previous investment mistakes (both his own mistakes and especially the mistakes of other great investors) is an excellent exercise. […]

Investment Philosophy

Two Types of Investments and Thoughts on ROC Part 2

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This is part 2 of a long post on my thoughts on how I break investments into two main categories: Earnings Based Investments and Asset Based Investments. This post picks up where the last post left off. Both are based on my investment checklist, which I posted last week. Check My Investment Checklist here, and read part 1 of this post here. Is the Investment Value Based on Earnings or Assets? So I look at ROC in most every investment, […]

Investment Philosophy

Two Types of Investments and Thoughts on ROC

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I wanted to post a follow up to my Friday post on my investment checklist. I got a lot of feedback and had a few follow up email conversations with readers who had questions and comments. Some wondered about the metrics used to check asset investments or financials (obviously EV/EBIT is not important there). I also had a question about ROC and why such an importance on it. There were some good questions and also some good advice/feedback. Thanks for […]

How to Improve Results

My Investment Checklist

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A few different readers have asked about checklists and whether I use one. I have started to recently, and have found it helpful. A year or two ago I heard Mohnish Pabrai talking about the Checklist Manifesto, and how he implemented his own checklist into his investment routine. Pabrai made an analogy to pilots, who go through a detailed checklist just prior to a flight. Using a checklist can help you catch something you didn’t check or didn’t think about. […]

How to Improve Results

Five Minute Stock Checkup

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With around 10,000 stocks to choose from when making investment decisions, you need to have a way of narrowing down the universe to a manageable number to perform more detailed research on. I’ve discussed my investment process a bunch in past posts, and I’m always looking for ways to make my routine more efficient. I basically use Value Line, screeners, 13-F’s, and other blogs for ideas on specific investments. I then put all my potential stock ideas onto a couple […]