Ask Yourself This

Key Investment Questions

Investment decisions are not easy, you worry constantly about whether you miss some vital piece of information, and sometimes fall into the trap of spending so much time looking for data that you can lose sight of what is in front of you.

When reviewing shares I have two separate parts to my spread sheets, the first is data orientated (I posted an example a few weeks ago of Brown (N) Group  that showed some of the key components) whilst the second is more of a checklist of factors that in my experience are important when making decisions. The list is not exhaustive and different investors will assign different levels of important to different parts; to keep things simple I highlight the answers in either red (negative) or green (positive) before writing a short narrative of my thoughts.

I have found the advantage of this approach and creating your own database on a share  – that can be time consuming – is that the data “runs through your hands” and you start to get a feel for whats going on in an firm that is not always possible when you are looking at a screen full of numbers and charts.

Click on the link below to see my recent Checklist for GlaxoSmithKline – apologies for the small font but I like to have this checklist on one page!

Investing Checklist GlaxoSmithKline Nov 2015

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