Research Check List

1. Find out the few things that matter to each single name

2. Collect original data on the above few things that matter

More phone calls are not always the solution; more data related to critical investment factors are

3. Be alert to the problem of missing information, which could be key to forming a contrarian stance

4. Explain why it’s a great business

Cyclical or not?

Competitive landscape

Key metrics to evaluate a business’ attractiveness (ROE, ROIC, etc.)

5. Explain why and how it’s cheap only for temporary reasons

6. Explain how, on normalized basis, it should be trading at a much higher level

7. Find catalysts

impending regulatory/legal change

expected sale/merger



large size share buyback

new product

management change

8. Reseach proxy

heavy insider ownership

recent insider transactions

special option grants

evidence of extraordinary management incentives

9. Alternative “story line”: why should I buy the stock => why should I not buy this stock

consensus view

variant perception

10. Understand why the market is not seeing value as I do

back-and-forth investment thought process

fill any gap in thinking of analysis

11. Be aware of 2nd or 3rd derivative consequences

competitive behavior change

regulatory response

employee morale




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