Hi Guys,
Checklists are useful tools that are deployed extensively by pilots, surgeons, and even investment professionals.
Ben Carlson is an excellent financial writer and published a fine article on checklists recently. Here is a Link to that article:
http://awealthofcommonsense.com/2016/10/knowing-when-to-break-your-own-rules/I don't have a formalized checklist when making an investment decision. Perhaps that's an error since many professionals do. But perhaps we should consider an investment checklist from now the fourth richest man in the world behind Jeff Bezos. That investment checklist is offered by a Mr. W. Buffett. Here is a reference to his short list:
https://www.process.st/warren-buffets-investment-checklist-the-secret-to-his-success/The experts in this arena emphasize that the list must be short, typically fitting on an index card. It must be simple enough to be followed; without being easy and practical it would be useless if not religiously practiced. But they also caution that the rules should be flexible enough to be violated, depending on circumstances. Of course, the difficulty is being smart and informed enough to recognize those special circumstances, and having the courage to act aggressively.
That's the grist in the mill. Not many of us have that wisdom and the guts to react promptly in a time sensitive situation. Then again, there's always the Index portfolio option. I'm following that route more and more these days.
Best Regards.
