1/n My investing process which is quite manual & achingly slow given that I get only a few hours a day & weekends
Rule1: Handwritten & filed in folders like below
Always have most of the documentation printed & filed. Ignore the stocks please.
2/n
Rule 2: An Investment checklist. Printed & filed in hand (snapshot below)
For the company in question as well as appropriate competitors
3/n
Rule 3: Have a Page 0. This I have learnt at work. I keep updating it if I come back to the company. Screenshot below.
Everything is given objectively as trend except the reason to reject the idea
4/n
Rule 4: Print out 4 pages (~65 questions) of a 'Moats Questionnaire'. I have compiled this from 2 sources Mauboussin & Dorsey. The public link is below
Unfortunately I never complete this well.
docs.google.com/document/d/1qX…
5/n
Rule 5: A Summary Journal which I fill after going through the Investment Checklist. Here I ask myself if I could short it then why & if I have to bet a significant portion of my net worth then why
6/n
Sources I use
AR
Inv PPTs
Concall transcripts
I have never attended AGMs & have rarely listened to calls. Time doesnt permit.
I go through VP forum & competition carefully.
7/n
I use my own WACC model but do have a ready reckoner of industry WACCs.
A screenshot below (ignore the nos). This is built completely using Prof Damodaran's methods.
8/n
I use screener download button to draw me up trends in all critical ratios as per me.
Also this excel model takes in WACC & tried to do a reverse DCF (rudimentary). Output is what is the EBIDTA growth market is pricing in?
Screenshot below (outputs sheets given)
9/n
Look at the charts on Tradingview/chartink.
I follow 2 simple things
Support
Resistance
That is all. Though someone still needs to prove all gaps are not filled 😉
10/n
Pray to God & start building a position which may take weeks & months sometimes.
The End.
Let me know your thoughts.
Here are the templates which I print & fill by hand.
docs.google.com/spreadsheets/d…
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