Module 8 ยท Building a Portfolio and Managing Risk
A simple checklist turns investing from a guess into a repeatable process.
A checklist keeps emotion out and ensures you do not skip a step. This is the same habit the watchlist tool on this site encourages.
A basic checklist: read the annual report, understand the business, check the balance sheet and debt, assess valuation, review governance, and define your downside.
Write your thesis down before buying. If you cannot explain why you own a stock in two sentences, you probably should not own it.
Example: HDFC Bank
A disciplined investor would check HDFC Bank's asset quality, deposit growth and valuation before buying - the same six-step checklist applies to every stock.
Writing down your investment thesis before buying helps you:
Draft your own one-line thesis for a company you follow. What would make you change your mind?