No. of Recommendations: 1
Brian, this is an awesome checklist. I happened to come across your post on Zoom and saw the link to this. I was in the midst of creating a checklist similar to yours based on the Fool values, Peter Lynch's "One Up on Wall Street" and my own biases. Here are some things in my checklist that aren't covered off:

Dividends: I like dividend payers and I give up to 14 out of 100 points based on: dividend history, yield, payout ratio and dividend growth rate.

Personal Conviction and Knowledge: I develop an investment thesis for each company I own by briefly describing how I think the company will outperform the market. I give 5 points for my confidence level in the investment thesis, and up to 5 points for my knowledge in the business. Collectively, this accounts for 10 out of 100 points.

Valuation: Buying a good business at the right price is important to me, and so I have 17 out of 100 points for valuation. I look at PEG relative to top 2 to 3 peers. I look at PE ratio relative to 12 months ago and relative to 3 years ago. I look at earnings growth and earnings consistency.

Industry / Economic Cycle: Based on Peter Lynch, I prefer boring and dull industries rather than the latest trend that has a lot of hype and new entrants. I know this is a controversial one for Fools, especially Rule Breakers. But I only weight it 2 out of 100. This would favour something like $OLLI over $TDOC, all else being equal. I also give a couple points for what stage in the economic cycle we are and what I think lies ahead. At the time of writing (April 2019), I believe we are at or near the peak of the economic cycle and likely heading for a downturn in the next few years. Thus, I would favour consumer staples over consumer discretionary.

I'll continue to fine tune my list over the coming days, months, and years. Your checklist was great in helping me develop my own. I've used mine to evaluate just 2 companies so far($GOOG and $AAPL) but can't wait to tackle more.

Again, thanks for sharing your great work.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.