A Checklist For Picking Great Stocks - Warren Buffett Investing Cheat Sheet

@irondad92 The internet has made value investing a waste of capital deployed. Nowadays follow the TAM, Revenue growth, and innovation. Most stocks that are a value nowadays are because there are better opportunities in the market.
 
@irondad92 I don't know how well this checklist will work, but the style is very unlike Buffett.

There's a chess match between a human grandmaster and a computer mainframe. This checklist is like the computer, mechanically evaluating every possible factor. Buffett is like the human grandmaster that avoids the majority of evaluation, analyzing only a few promising lines of play and traps to avoid.

Both styles can win, but the processes are not similar.
 
@irondad92 How about the quality and drive of the actual working people at these companies? Is there some metric for that? I have a hard time understanding this because the people working there should have some type of impact on the overall performance and growth of a company, etc.
 
@deltaup I do have an impact checklist in there to try and address this. However Impact is hard to quantify. I have found 3 metrics to filter by, other than that, it comes down to simply filtering out the most harmful industries.
 
@irondad92
Stay away from qualitative judgement as much as you can.

Like 90% of Buffett's success has been built upon qualitative judgements. The other 10% has basically been merger arb and work-outs. Cigar Butts like this have had next to zero impact on his long-term compounded returns.
 
@irondad92 Wow this is an amazing checklist. Though I have to ask, have you ever actually found a company that ticks all the boxes? And and how many X's do you need before saying no to a company?

I personally only have 13 criterias in my checklist in order to screen stocks before doing
an in depth research into them.
 

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