Michael Zhou's List: Investing Checklist

• 1. Measure risk
   All investment evaluations should begin by measuring risk, especially reputational.

   

  2. Be independent
   Only in fairy tales are emperors told they’re naked.

   

  3. Prepare ahead
   The only way to win is to work, work, work, and hope to have a few insights.

   

   

  4. Have intellectual humility
   Acknowledging what you don’t know is the dawning of wisdom.

   

  5. Analyze rigorously
   Use effective checklists to minimize errors and omissions.

   

  6. Allocate assets wisely
   Proper allocation of capital is an investor’s No. 1 job.

   

  7. Have patience
   Resist the natural human bias to act.

   

  8. Be decisive
   When proper circumstances present themselves, act with decisiveness and conviction.

   

  9. Be ready for change
   Live with change and accept unremovable complexity.

   

  10. Stay focused
   Keep it simple and remember what you set out to do.

• 第一，营业收入增长率与盈利增长率比较，分析增长的含金量。
• 第二，营业收入增长率与市场占有率增长比较分析竞争优势的变化。
• 巴菲特强调，投资的关键是分析一家公司的竞争优势，尤其是竞争优势的可持续性。分析公司的市场占有率增长情况，是分析其持续竞争优势的一个重要指标。

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• Stay within your circle of competence
• Look for Economic Moats
• Quality of Management

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• #1. Cash Conversion Cycle
• #2. Cash Return on Invested Capital – CROIC
• #3. EV/EBIT Valuation Ratio
• #4: FCF to Sales
• #5: Free Cash Flow to Short Term Debt
• #6: Inventory Turnover
• #7: Magic Formula Yield
• #8: Piotroski Score
• #9: Price to Intrinsic Value
• #10: DuPont Model for ROE

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