“Under conditions of complexity, not only are checklists a help, they are required for success.” – Atul Gawande, The Checklist Manifesto
By John Kingham
If you’re new to the world of stock picking and value investing (or even if you’re not) then this page has a few tools which you might find useful.
0. Learn about defensive value investing
- Before you use the tools on this page you should have at least a basic understanding of my investment strategy.
1. Find potentially attractive investments
- Once you have a basic understanding of my approach, you’ll need to find some consistent dividend-payers to apply it to. You could use:
- The AJ Bell Dividend Dashboard (a free quarterly newsletter)
- Sites such as DividendChampions.UK which list consistent dividend payers and dividend growers
- The UK Value Investor stock screen, which isn’t free, but does list about 200 FTSE All-Share dividend payers and ranks them according to their growth, profitability, valuation and other factors.
2. Analyse a company’s financial results
- After you’ve chosen a company you’ll need to review its financial track record.
- Here’s the latest version of the Company Review Spreadsheet (Google Sheet) which I use to review companies on a regular basis.
- Here’s an old version of the spreadsheet (MS Excel) which matches the metrics used in my book, The Defensive Value Investor.
3. Analyse a company’s business
- If a company makes it past the various rules and hurdles in the spreadsheet, the next step is to review its business in more detail.
- Here’s the latest version of the Company Review Checklist which I use to review companies before adding them to the model portfolio.
4. Manage the portfolio to reduce risk and increase returns
- Managing a portfolio of shares is like managing a garden. There’s always something to do, such as trimming back fast-growers and replacing weeds with something healthier and more attractive.
- Here’s a Portfolio Review Spreadsheet which I use to track the diversity of the model portfolio.
- To track performance, I use this Portfolio Performance Spreadsheet. Some of the ideas behind the spreadsheet are outlined in this blog post on how to measure your portfolio’s returns.