From the Inside Flap
All too often, investors buy stocks based on eitherrecommendations from other investors, hunches, or isolated factsabout a business they've heard or read about. In doing this, yourdecision-making process becomes dangerous because you haven't takenthe time to thoroughly understand the businesses you are buying andyou're relying on the information, or misinformation, beingprovided to you about a particular stock. Instead, your investmentpurchases should be based on understanding the value of a businessthrough in-depth research. If you truly understand the value of abusiness, then you will be in a position to recognize investmentopportunities and can more easily make the right buy or selldecisions.
The Investment Checklist has been designed to help you developan in-depth research process, through a series of checklists, thatwill allow you to effectively generate and research investmentideas, assess the quality of a business and its management team,and ultimately improve the performance of your portfolio. In it,author Michael Shearnfounder of Time Value of Money, LP, andthe Compound Money Fund, LPoutlines the systematic process hehas used over the past decade to carefully think through potentialinvestments and avoid common investment mistakes. Along the way, heputs this approach in perspective by addressing:
A search strategy that will improve your odds of findinginvestment ideas worth researching further
The importance of evaluating a business's strengths andweaknesses, measuring its operational and financial health, andunderstanding a business from the customers' perspective ratherthan your own
Why assessing the quality of management from how theyhandle daily operations and long-term strategy to the type ofmanagers they are and how they rose to lead the businessareessential to achieving better investment results
How to gauge the potential future growth opportunities of abusiness by looking at whether it's growing organically or throughmerger and acquisitions, and whether historical growth has beenprofitable
And much more
Each chapter of The Investment Checklist also offers countlessexamples of companies the author has researched, consideredinvesting in, and actually invested in or decided not to invest in.These examples show you exactly how his checklist helped him makeinvestment decisions, and they'll show you how to do the same. Inaddition, each chapter ends with "Key Points to Keep in Mind," soyou can zero in on the critical factors in each set ofquestions.
If you want to lower your investment risk you need to increaseyour knowledge of the businesses you buy stock in. The InvestmentChecklist will show you how to do this, and much more, by helpingyou follow a concise and easy-to-use framework that will guide yourinvestment decisions.
From the Back Cover
Praise forTHE INVESTMENT CHECKLIST
"Every wise investor will keep The Investment Checklist next totheir financial instrument panel and consult it whenever they makea decision to buy or sell a stock."Robert P. Miles, author,The Warren Buffett CEO
"Michael Shearn has written an indispensable book. It will raisethe game of every investor who reads it. Fortunately, not all ofthem will." Judd Kahn, co-author, Competition Demystified andValue Investing: From Graham to Buffett and Beyond
When you base your stock purchase decisions on isolated factsand don't take the time to thoroughly understand the businessesyou're buying, costly investment mistakes are usually made.Instead, your investment purchases should be based on understandingthe value of a business through in-depth research.
That's why Michael Shearnfounder of Time Value of Money,LP and the Compound Money Fund, LPhas created The InvestmentChecklist. In it, he shares the successful approach he's used overthe past decade to generate and research investment ideas, assessthe quality of a business and its management team, and ultimatelyimprove his overall investment performance.
Along the way, you'll be introduced to specific "checklists"that will enhance your ability to understand the dynamics of thebusiness you're interested in and the people operating it, valuethe potential investment, and make the most informed buy or selldecision possible. Each chapter also contains countless examplesthat show you exactly how the author's checklist has helped himmake the right investment moves over the course of his successfulprofessional career.
Whether you're just starting out and thinking about what youwant to invest in, or already have a portfolio that you want tomanage more effectively, The Investment Checklist has the tools andinsights you need to improve your investment endeavors.