profile

Long-Term Mindset

🧠 Our Favorite Investing Tool

Published 4 months agoΒ β€’Β 3 min read

View Online | Sign Up | Advertise​

Friends,

Over the past decade, all three Brians have held many roles at The Motley Fool. One of the most challenging tasks we've ever faced was to vote on which stocks should be called "Best Buys Now." The assignment was to sift through hundreds of past recommendations and nominate five compelling opportunities each month.

At first, this was a daunting task. How was it possible to sift through hundreds of stocks each month to pick out just five?

While challenging at first, all three of us found that this task became much easier over time.

A key reason why is that regular voting forced us to develop systems for ranking stocks rather than relying on our memory.

We each independently developed our own investing checklists that focused our attention on variables that mattered most to us.

  • Stoffel developed his "Anti-fragile" investing framework, which emphasizes competitive advantage & optionality.
  • Feroldi created his "Quality Checklist," which emphasizes revenue & profit quality.
  • Withers created his investing checklist which emphasized growth, management, and valuation.

To say our checklists became our favorite investing tool would be an understatement. These checklists continually forced us to focus on the factors that matter most to us. And because our scores were saved and updated over time, we were able to evaluate more companies at a faster pace while battle-testing our decisions with real-world data.

Looking back, it's a head-scratcher as to why it took so long for us to create our checklists. Investors have to track many variables when picking individual stocks. Trying to keep everything in your head is not only impossible, but it's a recipe for poor decision-making (we know first-hand).

Instead, we should have taken inspiration from the investing greats we admire so much. After all, Warren Buffett has built his own investing checklist. So has Charlie Munger, Pat Dorsey, Seth Klarman, Howard Marks, Joel Greenblatt, Peter Lynch, Lou Simpson, Jim Chanos, Bill Ruance, Sam Zell, Tom Gaynor, Jeremy Grantham, John Templeton, Chuck Akre, Francois Rochon, David Gardner, and Philip Fisher.

If all these super-investors rely on investing checklists, shouldn't you?

Wishing you investing success,

- Brian Feroldi, Brian Stoffel, & Brian Withers

P.S. In 2024, members of our Long-Term Mindset Community will be building their own personalized investing checklists from scratch. If you're interested in learning more about the premium community, click here to get on the waitlist to be notified as we release details.


Transform your financial future

Just a decade ago, Cori Arnold found herself drowning in $260,000 of debt, encompassing $140,000 in student loans and $22,000 in credit card dues. Two game-changing moments later, she had not only managed to clear her debt within five years but also amassed a million-dollar fortune by the tenth year. In her enlightening new book, 'Win with Your Money', Cori shares her savvy debt-clearing techniques and wealth-building strategies that catapulted her towards financial independence. As an added bonus, you'll get a complimentary budgeting and net worth template to kickstart your own financial revolution.

​

One Simple Graphic:


One Piece of Timeless Content:

2022 was a terrible year for the 60 / 40 portfolio - (60% stocks / 40% bonds). Many are now dismissing this investing strategy altogether. Ben Carson, an analyst at Ritholtz Wealth Management, shares the history of this strategy and disputes the naysayers.


One Thread:

Need help building an investing checklist? This mega-list of investing questions is a great place to start:


One Resource:

​Sieva Kozinsky is a rare breed. He co-founded Enduring Ventures, a long-term holding company that "buys exceptional businesses and builds them to last forever." Luckily, for curious investors, he shares his insights in a weekly newsletter; click here to check it out.


One Quote:


More From Us:

πŸ‘¨β€πŸŽ“ NEW! Want to learn the basics of accounting? Click here to enroll in a 5-day email course that covers the three financial statements in detail. It's completely free.

πŸ“— If you've read Brian Feroldi's book, he'd love a review.

πŸ‘¨β€πŸŽ“ The next cohort of our flagship course, Financial Statement Explained Simply, is starting in January 2024! Click here to join us.


Long-Term Mindset

by Brian Feroldi

I teach you how to invest with a long-term mindset. Each Wednesday, I share six pieces of timeless content that can be read in less than 2 minutes. Read by 100,000+ investors from a16z, Amazon, Google, Microsoft, and more.

Read more from Long-Term Mindset

View Online | Sign Up | Advertise Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better. Today's Issue Read Time: <3 minutes Lesson: The future matters the most Timeless Content: Difference between bold and reckless Thread: 15 timeless investing visuals Resource: Dividend ETFs And more! Together With Sidebar Sidebar is a leadership program that accelerates your career. It’s where people at the top of their field grow through a small peer group, virtual platform,...

4 days agoΒ β€’Β 3 min read

View Online | Sign Up | Advertise Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better. Today's Issue Read Time: <3 minutes Lesson: A tale of Shopify's losses that weren't Timeless Content: Advice for young investors (or young at heart) Thread: Net income versus free cash flow Resource: Farnam Street blog And more! Together with 10 East 10 East is a membership-based investment firm focused on private market exposures for a select community of institutional and...

11 days agoΒ β€’Β 3 min read

View Online | Sign Up | Advertise Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better. Today's Issue Read Time: <3 minutes Lesson: Understand the base rates of stocks losing to the market. Timeless Content: How to get rich. Thread: Stoffel's Antifragile Portfolio reviewed Resource: Warren Buffett archives And more! Together with Finchat Brian Feroldi analyzing a stock with Finchat I (Feroldi here) am a huge fan of visuals. A good chart can relay information 10x...

18 days agoΒ β€’Β 3 min read
Share this post