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Feedback On Investment Checklist?


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I was hoping the smart and kind folks here at CoBF can provide some feedback and add to this investment checklist I drafted.  It's based on Buffett's and Munger's 4 filters.  Also, if you can share some things on your checklist then that'd be great too!  Thanks.  :)



Is the company within my circle of competence?

What are the company’s mission, vision, and values?

What product(s) and/or service(s) does the company sell?

Who are the customers?  how do customers make their purchase?

Is the product(s) and/or service(s) value-added to customers?  if so, how?

Are customers purchasing the product(s) and/or services(s) on a recurring basis?

Is the company dependent on government contracts and subsidies for revenues?

Are revenues dependent on a concentrate group of customers?

Do new technologies foster product and/or service improvements?

are customers’ demand increasing in the foreseeable future?

how big is the market size of the industry?

Is the company a leader in the industry?  If so, what is the company’s market share?

Is it an attractive industry with many profitable companies?

Is the industry growing or shrinking in size?

Which part of the economic cycle is the industry in?  is it trending up or down?

How is technology affecting the industry?  is it positive or negative?

How can the company grow its market share?

Who are the company’s competitors?

What are competitors doing differently?

What challenges will the company face going forward?

How will these challenges be overcome?

Will the company require sufficient equity financing to grow?


Does the company have any durable competitive advantages?

What is the company’s moat?

Is the moat dependent on technological superiority?

Is there a consistent operating history?

Are margins above the industry average?

Are margins increasing or decreasing?

Are returns on assets, equity, and capital above the industy average?

Are returns on assets, equity, and capital increasing or decreasing?

Is the company able to raise prices above the rate of inflation?

Is the company asset-light and require minimal capital expenditures?

What are competitors doing to breach the moat? 

Are competitors taking market share?

How would the moat be breached and/or eroded?


Is the company operated by honest and able management?

Who are the managers?

How long have managers been with the company?

Are managers shareholders?  If so, what is the ownership percentage?

How is management compensated?  what is their annual pay for prior years?

Does management communicate transparently with shareholders?

Does management openly discuss future plans?

What are short- and long-term plans?

How is management growing the business?

Describe the culture?

How does management treat employees?  Are they well compensated?

What is the average employee tenure?

Is management’s performance consistent with their past expectations?

Does management give shareholders enough information to value the company?

What is management’s capital allocation strategy? 

How are resources allocated toward R&d and sales/marketing?

How effectively is management converting return on capital to growth in book value?

What metrics does management use to determine business success?

How effective is net income converted to free cash flow?

Is management consistent with their use of operating leverage?

Does the accounting make sense?

Are acquisitions considered growth or maintenance capital expenditures?


Is there a margin of safety in the current stock price?

What is the revenue per share growth rate for the past 5 and 10 years?

What is the earnings per share growth rate for the past 5 and 10 years?

What is the book value per share growth rate for the past 5 and 10 years?

What are the current multiples for earnings, free cash flow, sales, and book value?

Are the multiples above or below the average for the past 5 and 10 years?

What percentage is the stock trading above or below its historical average?

Why is the stock trading above or below its historical average?

What is the expected future growth going forward?

Is the expected future growth higher than the industry?

Is the expected future growth higher than the S&p 500?

What multiple will the stock trade in 5 and 10 years from today?

What is the expected annualized return if purchased at today’s price?

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