Home » Behavioural Investing » Bruce Berkowitz Investing Check List #FairholmeCapital

Bruce Berkowitz Investing Check List #FairholmeCapital

Bruce Berkowitz adheres to this investing checklist. I like point one. It relates to self-induced Black Swan events.

1. Can you kill  the investment?  Is there adult supervision at the company?
2. Is the company essential? Does it depend upon the kindness of strangers?

3.  What can the company make?  Reasonable profitability for owners?
4. How  are owners paid? Distributions?
5. Management – honest in past and  present?
6. Does accounting reflect reality?
7. Does the balance  sheet match up with the income statement?
8. Catalysts – Buybacks?   Misunderstood?  Is enterprise having a big problem that is fixable?  Everyone’s  been burned by the stock so afraid to buy it.
9. Are there irrational  fears of current headwinds?
10. Does the business have pricing power or  unit growth?
11. Can you hold the investment for a long time & does  it improve portfolio performance?

George Gutowski writes from a caveat emptor perspective. Follow him on twitter@financialskepti

Advertisements