Joe Koster
- Are you tired?
- Did you make this investment decision while the market was closed, so that current price moves aren't impacting your judgment?
- Have you done enough work, and are you sure this is within your circle of competence?
- Is the balance sheet conservative to allow the company to endure—and hopefully take advantage of—even the most difficult of economic environments?
- Is the management team comprised of the kind of people you want to partner with, and are their interests clearly aligned with your interests? It’s not worth being business partners with people you don’t like and admire, and as an owner of the business they are running, you are essentially their partner.
- Is this a good business?
- Do you have downside protection?
- Is this business almost certain to be making more money 10 years from now, and can it increase its long-term value in a tough economic environment (e.g. by buying stock, taking business from weaker competitors, treating weaker customers and suppliers well in order to build long-term trust, etc.)?
- Am I viewing this as a business and not just a stock? Am I taking the mindset of buying the business outright, and retaining management?
- Am I sizing the position appropriately?
- No FOMO, No Sunk Costs, and No Acting Out of Boredom.
