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?
- 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
