3 ms·

Seems like I'm in the minority but this is freaking awesome especially for newer investors who want to go beyond passive index funds (spare me any lectures) Wi

Seems like I'm in the minority but this is freaking awesome especially for newer investors who want to go beyond passive index funds (spare me any lectures) Will going through the checklist for each investment mean you'll always be right? No. But I think going through these questions as an exercise will help you understand what makes a good/attractive business which is a fundamental skill in investing.

sandworm101 4y ago
Checklists are only ever as good as the data behind them. This is a goodish checklisk for the uninitiated. Cool. But do you trust the answers you are getting? Do you trust the date as delivered by the company in response to these very internal questions. This list is also full of useless questions that tell more about the potential investor than the actual company. For instance: >>If the company succeeds, does everyone—employees, managers, founders, investors, suppliers, customers—get about what they deserve? "What they deserve"??? Really? That says nothing about the company. That only tells you whether or not the company's reward scheme comports with your personal notion of fairness. It is more about politics than investment potential. But maybe that's what people want these days.
- renewiltord 4y ago
  Perhaps it is useful, but misstated? "At what exit valuation will each of the following categories obtain a significant outcome and a life-changing outcome? Founders, Series X investors, early employees, marginal employee." The reason to care about Founders is to see if they have skin in the game. Investors to see if you're going to make anything. Employees to see retention and hiring. Still a bit sideways but perhaps worth thinking about anyway. But it would still have warned about something like Bolt - the marginal hire will have received an insane strike price.
DontchaKnowit 4y ago
I absolutely agree, I was a bit surprised to see the reaction. This would have been enormously helpful to me early in my investing journey, just after learning basic definitions and reading some buffett-adjacent books.

sandworm101 4y ago

Checklists are only ever as good as the data behind them. This is a goodish checklisk for the uninitiated. Cool. But do you trust the answers you are getting? Do you trust the date as delivered by the company in response to these very internal questions. This list is also full of useless questions that tell more about the potential investor than the actual company. For instance: >>If the company succeeds, does everyone—employees, managers, founders, investors, suppliers, customers—get about what they deserve? "What they deserve"??? Really? That says nothing about the company. That only tells you whether or not the company's reward scheme comports with your personal notion of fairness. It is more about politics than investment potential. But maybe that's what people want these days.

renewiltord 4y ago
Perhaps it is useful, but misstated? "At what exit valuation will each of the following categories obtain a significant outcome and a life-changing outcome? Founders, Series X investors, early employees, marginal employee." The reason to care about Founders is to see if they have skin in the game. Investors to see if you're going to make anything. Employees to see retention and hiring. Still a bit sideways but perhaps worth thinking about anyway. But it would still have warned about something like Bolt - the marginal hire will have received an insane strike price.

DontchaKnowit 4y ago

I absolutely agree, I was a bit surprised to see the reaction. This would have been enormously helpful to me early in my investing journey, just after learning basic definitions and reading some buffett-adjacent books.