Got a really good tip that you should try implementing yourself.
First, let me introduce Adib Motiwala.
Adib Motiwala of Motiwala Capital
He is a portfolio manager, fellow blogger, friend and former Old School Value member, at Motiwala Capital.
Right now, he is living the dream that you may have.
He was working full time, started to invest on his own, got addicted and started his own investment management business with seed money from friends and family.
I’m sure he tap dances to work every day doing what he loves.
Adib is doing a fine job with his investments too.
But and I was reading his 2013 Q4 letter and was hit by such a simple yet brilliant idea.
You Should Implement This For Yourself
Take a look at this table.
When I see the table above, I don’t see the tickers or the numbers. I immediately see how useful and convenient this table is.
Honestly, I don’t like writing notes for every single stock I own.
Despite that I have a checklist and have several resources where you can download and create your own checklists, I’ve always wanted a quick way to immediately recall the purpose of investing in a stock just from a glance.
This table does that.
More details on the table above.
- B/S = strong balance sheet
- Div = pays a dividend
- FCF = solid free cash flow
- ROIC = solid Return on Invested Capital (ROIC)
- Val = low/reasonable valuation
Right away, you can tell what type of companies that Adib looks for. Obviously, you can customize it however you want.
Add more, cut it, change the criteria. Whatever.
It’s simple and effective.
If clients see it, they understand what it means.
The Old School Value Version
I have something similar myself.
Same concept, just visually different.
The table form is more compact for when you have a long list of stocks in a watchlist though.
I’ve already incorporated the table format into my notes spreadsheet and look forward to seeing how it will improve my investing.
Thanks for the idea Adib.
Now back to you.
What’s your tip on improving a watchlist/research template or spreadsheet?