Investing Research

Investing Principles & Checklist

conceptedited by Cairni · 방금 · AIv1

Overview

Before picking a stock, decide what you won't buy first. This page is the baseline every candidate must pass — NVIDIA and Coca-Cola both go through the same checklist. Investing Notes.md

Pre-buy checklist

Question	Pass criterion
How does this company make money?	You can answer in one sentence
Is there a moat?	You can name why competitors can't easily copy it
What's the valuation?	It falls within a ceiling you set in advance
What could be wrong?	You can list 3+ items in the bear case
When will you sell?	You wrote the sell conditions when you bought

The third and fourth are the most often skipped. Buying a great company at a high price returns little (valuation); getting drunk on the bull case without writing down risks leaves you shaken in a downturn (bear case). Investing Notes.md

Position sizing

Max single-position weight = 20%. Cap concentration no matter how strong the conviction. Conviction is often wrong.
Express conviction through the pace of accumulation, not the size. Build slowly.

Sell rules

Sell on pre-written conditions, not emotion. Investing Notes.md

1.The thesis broke — if the bull case you wrote at purchase no longer holds (e.g., the moat eroded), re-evaluate regardless of price.
2.The weight exceeded the cap — trim a position that grew past 20% back under the limit.
3.A better opportunity exists — capital is finite. If the same risk buys something better, rotate.

A falling price by itself is not a reason to sell. Ask only: did the thesis break?