Bruce Berkowitz's Checklist

Bruce Berkowitz

  • Can you kill the investment? Is there adult supervision at the company?
  • Is the company essential? Does it depend on the kindness of strangers?
  • What can the company make? Reasonable profitability for owners?
  • How are owners paid? Distributions?
  • Management - honest in past and present?
  • Does accounting reflect reality?
  • Does the balance sheet match up with the income statement?
  • Catalysts - Buybacks? Misunderstood? Is enterprise having a big problem that's fixable?
  • Are there irrational fears of current headwinds, i.e. has everyone been burned by the stock so afraid to buy it?
  • Does the business have pricing power or unit growth?
  • Can you hold the investment for a long time & does it improve portfolio performance?