Monthly Archives: May 2014

The Investment Checklist Book Review

the investment checklist book review

Read this blog post to see if the investment checklist is the right book for you…

The Investment Checklist by Michael Shearn is a fascinating read about “The Art of In-Depth Research.

The Investment Checklist first came on my radar after finding an AMA with Michael Shearn on the Investing sub-Reddit. I also found these video interviews with Michael Shearn. And after hearing his perspective on all of the above I couldn’t but buy his book, The Investment Checklist.

So in this book review we’ll take a careful look at The Investment Checklist, including the best parts, and where it comes up a little short.

By the time you’re done reading this book review you should have a great idea of whether Michael Shearn’s Investment Checklist is the right investing book for you.

Who Should Read The Investment Checklist?

The Investment Checklist will be appealing to you if you’re looking to get serious about investment research. To be sure, this book won’t be of interest to short term technical swing traders. But for those of you looking to build wealth over the long term by investing in publicly traded securities, The Investment Checklist will be right up your alley.

If you’re serious about investing and doing so in a methodical manner you will definitely want to read The Investment Checklist. Just like the title explains, The Investment Checklist provides an in-depth checklist that helps ensure you are doing the proper due diligence on potential investments. So what else do you need to know?

Well…

The advice in the book is definitely based on the concepts of value investing, and is the kind of advice you might expect Warren Buffett or Charlie Munger to give. So if you’re interested in how those guys think about investing, The Investment Checklist is definitely a book for you.

And by the way:

The Investment Checklist does a “deep dive” into each of the criteria on the checklist. So it’s not like you’re just skimming over a bunch of ideas. Shearn does a great job explaining each item on the checklist, where to get the answers to the questions, and what he personally likes to see and what he avoids when evaluating investments with his checklist.

On that note…

Here’s The Best Part About The Investment Checklist:

As an investor I’m always looking to improve my approach to finding great stock picks and investment ideas. So getting an inside look at how a professional money manager conducts their due diligence was incredibly illuminating.

And since the book is a checklist, it’s really focused on actionable points of information. The chapters progress in a logical order and you quickly realize that this approach provides a comprehensive view of the company that has your interest.

The other thing I really appreciated about The Investment Checklist is that the end of the book has the summarized checklist. The whole checklist fits into about 3 pages so having this little reference guide is very handy. I think I’m going to type it up and literally fill it out for companies I’m thinking about investing in.

Finally, Shearn also includes a few chapters on how to find information and develop a network of information sources. It’s great advice on how to do Scuttlebutt that made me think of Phil Fisher’s Common Stocks and Uncommon Profits, – another great investment read.

But before I get carried away telling you all the great things about this book, let me make one thing clear.

The Investment Checklist Book Review Is Packed with Information:

I usually try to give balanced investing book reviews that cover both the positive and the negative aspect of the book. In the case of The Investment Checklist though, I’m having trouble coming up with anything negative. So…

My only comment would be that The Investment Checklist is packed with information. This is obviously a great thing. But it makes for 40 page chapters that are pretty dense. So reading this book was a little bit slower than I expected.

That said, I would definitely have the author err on the side of more information than less! So in summary…

The Investment Checklist – The Final Word:

The Investment Checklist is a great book for any serious investor. If you’re going to be trying to allocate your capital for the rest of your life I really recommend reading this book. Not only does it get you on the right track, but it also helps you understand the importance of methodical research and not jumping into ideas too fast.

For that reason, I recommend you buy The Investment Checklist on Amazon on Amazon. It’s an enjoyable read and a handy reference book that can help you for years to come. If you’re still on the fence I encourage you to check out the video book review below for a little more information.

The Investment Checklist Video Book Review: