If you read any great investing books you’ll come across an extended investment checklist. Lynch had his simple philosophy. Fisher had fifteen points. And Graham had his portfolio policy and value formula. Even Buffett and Munger talk about keys to a great company.
The idea of a checklist isn’t new. It’s used by a number of professions, like engineers, pilots, and doctors, to prevent mistakes. There’s a reason every flight seems like a ritual. Both pilots and flight attendants go through a checklist before, during, and after each flight.
As a passenger it seems trivial, but they do it for a reason. It works. It makes sense too. Lives are on the line and anything that prevents errors and mistakes, inevitably saves lives. And all because of a simple checklist.
You can apply the same concept to your portfolio and investments. Continue Reading…
There are many investing debates where serious investors latch onto their choice and once locked in rarely waiver. There is growth versus value. You have index versus mutual funds. Active versus passive is probably the biggest. Yet, every investor has an opinion about stock buybacks versus dividends.
One of the most overlooked areas of tax savings is understanding how realized gains and losses impact your taxes. When you sell an investment, calculating cost basis and good record keeping plays a vital role in controlling those savings now and in the future.