Thread by @BrianFeroldi

1/ How to create an investment checklist (thread)

Checklists are an amazing, FREE, underutilized investing tool

Here's the step-by-step process for how to create your own

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2/ First, decide what kind of investor you want to be

Are you after:

Compounding machines?
Disruptors?
Dividends?
Founder-led?
Growth at a reasonable price?
High-yield?
Hypergrowth?
Low volatility?
Wide moats?

Know what kind of investments you are after!

3/ Make a list of all of the positive attributes that a "perfect" company would have

Some ideas to get you started:

4/ Make a list of all the attributes that you want to avoid in an investment

Some ideas:

5/ Determine a maximum score for the positive attributes

I use 100 for simplicity

Determine a maximum negative score for the negative attributes

I used -54 (to counter-balance the positive weightings)

6/ Rank the attributes that you like from most important to least important

Assign the 100 points, giving more weight to the most important attributes

Repeat for attributes that you want to avoid

7/ Keep tweaking the checklist until you are happy

It's hard!

Then, create an excel/google sheet to keep track of your work

8/ Start to rank your companies!

Get the data from

1⃣ Company's investor relations page
2⃣SEC

Here's a handy table to decode SEC gibberish

9/ Come up with thresholds for investment

Mine are:

80+ : Why don't I own it?
70 - 79 : Investable
60 - 69 : Borderline
Below 59: Why bother?

10/ Buy the top scores

Avoid the worst scores

11/ Track your results!

Is your system working?

Are you beating the market?

If not, why? Make changes to your system to make it better!

12/ Share with others & seek feedback!

Peer review is an amazing process for making your process better

13/ Handy resources for coming up with checklist ideas

Mega-list of checklists used by famous investors:

valuewalk.com/wp-content/upl…

14/ Link to my public checklist spreadsheet

docs.google.com/spreadsheets/d…