Thread by @deepakvenkatesh

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…