When you are making a decision about buying a business there is no doubt you would want to know everything there is to know about the business to be able to make an informed decision. The same should be true of investing because, after all, investing is just buying a part of a real business.
But where do you begin? Sometimes the amount of information can be overwhelming if not collected and analysed intelligently.
At Farnam, part of our core investment decision making process is a checklist so we can ask the same questions of every company we analyse. No business will ever pass every checklist item, but after completing it, we have a very good idea of whether or not it is worthy of our investment.Details