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The Checklist Manifesto - Atul Gawande


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  • 2 years later...

Just finished this book yesterday. I would highly recommend this to most folks. The abject narcissists out there would not benefit from it, however. The author did not speak much to what compels individuals to not use a checklist, but I feel that's a pretty important part of the equation.


In my opinion, it's really an ego thing, and all of us suffer from that to one extent or another. We all have a tendency to overestimate our intellect, our memory or our aptitude. Accordingly, we don't feel the need for checklists. In reality, even the most brilliant and disciplined among us would benefit from using checklists for multitude of applications. The reason we don't is because we feel we don't need it. Bottom line, we all need it.


This applies completely to investing, and I'm really looking to develop a checklist (though I'm not against leveraging off of a previously developed one).




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Story time for people interested in checklists. Once upon a time, an airplane ran out of fuel over the Atlantic Ocean:





Here's the checklist that could have helped, or not:




The mistake Captain Piché made was that he memorized the checklist, but not the warning:



Checklists are a good thing. Simplifying the problem space is more important, which is why the following checklists could be useful to most people:

  • Problem: What should I buy today?
    • Buy an index fund
  • Problem: How much time should I spend on macro?
    • 3 minutes per year
  • Problem: Do I need a blockchain?
    • No

Surgery and flying airplanes are activities that cannot be simplified much.


90 FAR SIDE ideas | far side cartoons, far side comics, gary larson ...

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  • 3 weeks later...

Has anyone put together or found any good checklists for an investment process? Ideally I am looking for an exhaustive list of tail risks / risk factors.


There is a good article in Poor Charlie's Almanac on Charlie Munger's investment process. I've uploaded a summary of the article I made here (not sure if I can add word files).


Munger's Investment Evaluation Process (PCA).docx

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