Book update:I missed my July 2012 deadline. But I am pleased with how this project is turning out. I figure the book is now about 500 pages. If I knew how to insert a picture of the manuscript, I would. So here's a draft of the table of contents. (The TOC are hyperlinks for now, to help me navigate faster. This is why the chapters are cryptic and have double-apostrophes.)As you'll see, the book has two part: the checklist and resources. There are a ton of case studies. Also, you'll see some of your favorite Fool writers in here. The 30-point checklist, created by David Gardner and other Fools, is a recent addition to the book.A lot of the material here you have seen before. But a lot of this material is also fresh. As I get a little closer to completion I may share sections and ask for feedback. Some of you are already in the acknowledgements for your help.If you have any comments, holler.Most important: Thanks for your interest! I am trying to write your single best investment book.hewitt***The Checklist Investor (Columbia University, 2014)Table of ContentsPART ONE: THE CHECKLIST(Analytic Tools)(Strategy)(Idea Sourcing)(Yes-No Matrix)(Economy & Markets)ENTERPRISE VALUE:Thesis(Gather-Read-Think)(Timeline)Organization TypeOrganization StructureOwnership(Ownership - worksheet)(Voting Power)(Ownership - turnover)(Ownership - matrix)(Family Business)Legal ProceedingsCapital Structure(Capital Structure - leverage)Notes to Financial StatementsCredit RiskCredit Risk - worksheetNumbers Scrub(number scrub_case studies)(Revenue-Expenses)(Ratios)(Accounting Distortions)(Cross-Statement Analysis)(Formulas)Stock PriceShares OutstandingEnterprise Value(Operating Leases)(Operating Cash & Equivalents)(Net Operating Losses)HeritageCorporate Structure - LoewsPoliticsREVENUE:Product-Service(Price-Frequency)(Life Cycle-Repurchase Cycle)Value Proposition(Value Proposition - matrix)Promotion(Advertising Spheres)(Consumer Behavior)PricingCustomers(Everett Rogers Bell Curve)(Hierarchy of Needs)(Economic Sensitivity)(U.S. Recession Worksheet)Revenue(Reportable Segments)Revenue - modelRevenue Model Lifecycle(Multi-Level Marketing)Revenue - quality(Demographics - U.S.)(Revenue - retail)(Revenue - stores)(Revenue Volume & Velocity)("S" Curve Revenue)(Commodity Hedges)Revenue - outlookRevenue - risk matrix(Acquisitions)EXPENSES & EARNINGS:Cost of Goods SoldOther ExpensesIncome TaxesNet income & EPSComprehensive Income(Currencies)Revenue-Expense ChainBALANCE SHEET:Assets(Business Affiliations)(Liquidity)(LIFO Reserve)(Asset Schedule)(Intellectual Property)Liabilities(Deferred Taxes)(Debt Maturity Schedule)(Pension Plan)Stockholders'' Equity(Float - worksheet)STATEMENT OF CASH FLOW:Operating Cash FlowInvesting Cash FlowFinancing Cash FlowDividends(Dividends - growth)(Dividend Yield-Growth)Free Cash Flow'STOCKHOLDERS' EQUITY:Statement of Cash FlowStockholders Equity Statement(Stockholders'' Equity - test)Economic Profitadjustments - Income Statementadjustments - Balance Sheet(Earnings Power Chart)(Stress Test)PEOPLE:ManagementManagement Tenure(Management Classification)(Management Interview)Insider Buying-Selling(Stock Option Grants)(stock options - notes)(Letter to Stockholders)Board of DirectorsCapital Allocation(Capital Allocation Tests)(Share Repurchase Test)(capital efficiency)(Acquisitions)Stewardship(corporate governance)(stewardship - notes)EmployeesCultureCOMPETITIVE ADVANTAGE:Stakeholder Analysis(Motley Fool Stakeholder)(Innovator''s Dilemma)Competitors(Competitor Matrix)Industry Structure(Industry Structure Matrix)(Industry ROIC)(Industry - Risk Characteristi)(Industry Structure - workshee)(Elasticity Matrix)Competitive Advantage(Competitive Advantage Types)(How to Analyze a Moat)Five Forces(Five Forces_worksheet)Competitive Advantage PeriodValue Chain AnalysisBeneficiaries & Victims(Commodity vs. Franchise)SWOT Analysis(SWOT matrix)STEEPLED Analysis(The Value of a Brand)StrategyValue DriversMcKinsey Growth PyramidBain Differentiation Map(Bain - Differentiated Company)(Innovation Ambition Matrix)(free options)INTRINSIC VALUE:(preface - flow chart)(preface)Valuation Checklist(Penman BP-EP portfolio)(How to Avoid a Value Trap)(Sustainable Growth Rate)(Forecasting Futility)Financial Statement AdjustmentsTangible Book ValueBen Graham Net-NetGraham & Dodd PE MatrixAnalyst EstimatesMultiples - Public Market(Multiples - 5 years)(Multiples - 5 companies)Private Market ValueLeveraged Buyout_worksheetSum of the Parts(Sum-of-the-Parts_Loews(Sum-of-the-Parts_Liberty Media(SOTP_Icahn Enterprises)Zero GrowthAAII Projected GainCost of CapitalDCF - 10 longMarket Expectations - AppleBuffett''s Magic 15 PercentImplied Growth - AAPLCroesus Test(Graham-Dodd-Greenwald - notes)(Graham-Dodd-Greenwald - notes)(Greenwald - strategy)EBITDA % UpsideReverse Graham EPSReverse DCFExpected ReturnReward-Risk ScoreTime-Weighted Reward-RiskStock Return ComponentsValuation - SummaryTHESIS:**Debt - investment gradeConvertible Debt**Debt - distressedPreferred StockCategory CreatorCategory Creator_matrixGrowth - secularGrowth - cyclicalGrowth - cyclical_worksheet(Operating Leverage)YieldCheap AssetsSmart MoneyStubStub_worksheetSpin-OffMerger ArbitrageActivistTurnaroundStock TenderLeveraged RecapitalizationLeveraged BuyoutLBOLBO_worksheetLBO_worksheet 2Busted IPOEquity ShrinkDistressPost-BankruptcyThrift ConversionCommodityThematicWarrantsShort SaleWhich Security to Buy_tableInvestment-SpeculationRisk AnalysisCATALYSTS:CatalystsLeverage(Schwab Negative Catalysts)TECHNICAL ANALYSIS/CHARTS:Technical AnalysisChart Reading(Scott O''Neil)ACTION TO TAKE:SentimentValuation-Time MatrixVariant Opinion(Sentiment Curve)Do I Have an EdgeConfidence TestSell StrategyTrailing StopAction to Take(Position Size)(Kelly Criterion)(options - risk management)PORTFOLIO MANAGEMENT:Portfolioreview - Dailyreview - Quarterly(Conference Call)(10 Clues Detect Shenanigans)(11 Signs a Company is Lying)review - AnnualYield-Growth MatixCorporate Actions(Acquisitions - worksheet)Stock Price Decline(The Value of Patience)SELLING:Bad NewsStock Decline AAII(Bad News - Profit Warning)When to Sell_active methodBehavioral Investing(Emotions and Our Brain)Soft Skills FinanceMauboussin Decision-MakingBarriers Long-Term ThinkEstimates-Investment DecisionPost MortemPost Mortem_diaryConclusionThe Last WordAppendix:IndexIndex - PeopleIndustry Checklists & NotesGlossaryFormulasMost Important Academic StudiesMost Important Behavioral MistaBehavioral FinanceBibliographyBerkshire Hathaway 13 PrinciplePART TWO: RESOURCESSmart Money:Buffett's "Best" BusinessCharlie Munger''s 3 Rules(Charles Munger Checklists)Earnings Power 1-2-3Buffett's 4 Criteria'Whitman''s 4 IngredientsMarkel 4 PointsMayer''s 4 CODEWesley Gray''s 5 StepsAlex Roeper''s 7 CharactPeter Cundill''s 7 TipsCasey Research 8 P''sBen Graham 10Bernard Baruch''s 10 RulesIan Rushbrook''s 10 RulesWest Coast''s 10 Signs of StrongWilliam O''Neil''s 10 CANSLIMJohn Mihaljevic 10 Pretender(Bob Farrell 10 Rules)Rotblut 10 Point Risk-RewardPhil Carret''s 12 CommandmentsPhilip Fisher''s 15 PointsJohn Templeton''s 16 RulesJesse Livermore''s 21 RulesMotley Fool 30Tim du Toit 39-point ChecklistPeter LynchT. Rowe PriceSkills:Better ThinkingBetter ReadingBetter ResearchBetter WritingBetter InvestingBetter Public SpeakingBetter Time ManagementBetter Living
Can't wait for this book to come out..
Thanks StatMatt2000! E-mail me Dec. 15 and I will send you a "beta" version to test drive. I just ask, tell me what you like and dislike. Hewitt.Heiserman@earningspower.com
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