Year-End valuation Investment Checklist

George Athanassakos is a professor of finance and holds the Ben Graham Chair in Value Investing at the Ivey Business School, Western University.

A Nine Point Checklist For Value Investors via The Globe and Mail

Value investor’s checklist

A value investor’s checklist looks something like this:

  • Always have an entry price and an exit price — and a strategy to be followed religiously. Value investors know their circle of competence and stick with it. They decide whether they are more comfortable investing in low P/E stocks or the stock of companies that have a competitive advantage and a dominant market position. .
  • Deal with less-followed stocks. These are the stocks that are not yet discovered and operate under the radar of large institutional investors and which, for this reason, are most likely to be undervalued.
  • Be alert to the possibility that they must not get carried away by their emotions – panic and exuberance, which hurt the performance of the average investor. Value investors do not like to make impulsive decisions. They try to be analytical; they discuss ideas with knowledgeable friends, and they have checklists that they stick to.
  • Act independently and rely on their own in-depth homework. Value investors are aware that CEOs, portfolio managers, securities analysts and rating agencies may have conflicts of interest — and they know, as a result, and

More here A Nine Point Checklist For Value Investors via The Globe and Mail