Checklist
Fundamental analysisA fixed set of questions applied to every investment before deciding.
In plain terms
It stops you dwelling on whichever question you find most interesting.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
Read the full lesson →
Disqualifiers
Risk & psychologyChecklist items that are binary — any single one failing means no position, with no weighing against strengths.
In plain terms
The part of a checklist that does the actual work. Scored items invite you to trade a weakness off against a strength, which is precisely how people talk themselves in.
Cognitive load
Risk & psychologyThe mental demand a decision places on someone under pressure and time constraint, under which trained experts reliably skip steps.
In plain terms
The reason checklists exist. What gets missed is never the thing you did not know — it is the thing you know perfectly well and are too excited to check.
Process discipline
Risk & psychologyApplying the same sequence of checks to every decision, including the ones you are already excited about.
In plain terms
Ticking boxes quickly to reach a decision you had already made is worse than no checklist, because it manufactures the feeling of diligence. If yours has never stopped you buying something, it is decoration.