I've been refining my due diligence process recently and wanted to see how the rest of the community handles their investing research process.
I've noticed that while the highly punctual items (e.g., checking for capitalized software vs. amortization ) are great for catching red flags and keeping me grounded, the principle-based questions often drive the actual conviction and help avoid "analysis paralysis."
Do you guys use checklists? and if so, I'm curious to hear about your processes:
- Do you actively use a written checklist while investing, or is your process more free-flowing? 2. How extensive or short is your checklist? Is it punctual with many checks/questions like forensic analysis, or a high-level one-pager? 3. Do you have strictly punctual (specific checks) or do you lean heavily into principle-based models (like Ackman or Francois Rochon do)?
What do you think is they best way to structure it to avoid over-refining it over and over again?