The Security I Like Best Checklist #Buffett #GEICO

This simple checklist was produced by inverting Warren Buffett’s classic article on GEICO: what mental or written checklist can we imagine Buffett used to think about GEICO and write the article?

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• Relative performance of industry (Is Mr. Market presenting an opportunity?)
• Recent performance of industry
• Nature of the industry
  • Advantages
  • Disadvantages
• History (brief) of the company
• Advantages of the company
• Growth – track record
• Growth – future prospects
  • market opportunity
  • competitive advantages
• Relative performance vs. industry peers
• Capital structure
  • use of cash
  • shares outstanding
• Management
  • board
  • senior executives
  • stock ownership
• Normalized earning power
• Valuation

Article by Greg Speicher