Charlie Munger Uses this Investing Checklist

7 Questions to Ask Yourself Before Investing

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Wanna know what separates great investors from mediocre ones?

Their investing checklist.

Charlie Munger uses one... and so should you.

Here are the 7 questions you need to ask yourself before making any investment decision:

(These have saved me thousands of dollars.)

๐Ÿญ) ๐—›๐—ผ๐˜„ ๐—ฑ๐—ผ๐—ฒ๐˜€ ๐—ถ๐˜ ๐—ณ๐—ถ๐˜ ๐—ถ๐—ป๐˜๐—ผ ๐—บ๐˜† ๐—ฐ๐˜‚๐—ฟ๐—ฟ๐—ฒ๐—ป๐˜ ๐—ฝ๐—ผ๐—ฟ๐˜๐—ณ๐—ผ๐—น๐—ถ๐—ผ?

Always keep your portfolio in alignment with the overall long-term strategy.

Make sure to rebalance when necessary.

๐Ÿฎ) ๐—ช๐—ต๐—ฎ๐˜ ๐—ฎ๐—ฟ๐—ฒ ๐—บ๐˜† ๐—ด๐—ผ๐—ฎ๐—น๐˜€?

It almost goes without sayingโ€ฆ but always know how each investment plays into your long-term goals.

Even if the goal is to make short-term returns, itโ€™s best to know it up front.

๐Ÿฏ) ๐—ช๐—ต๐—ฎ๐˜โ€™๐˜€ ๐˜๐—ต๐—ฒ ๐—น๐—ถ๐—พ๐˜‚๐—ถ๐—ฑ๐—ถ๐˜๐˜†?

Most of the time, you want to have quick access to your money, especially when youโ€™re in a pinch.

Know how quick you can get your money out in less than ideal situations.

๐Ÿฐ) ๐—ช๐—ต๐—ฎ๐˜ ๐—ฎ๐—ฟ๐—ฒ ๐˜๐—ต๐—ฒ ๐—ณ๐—ฒ๐—ฒ๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—ฐ๐—ผ๐˜€๐˜๐˜€?

Always know what your all-in costs are and find out if thereโ€™s any front-load fees, ongoing fees, and selling fees.

Besides investment loss, fees are one of the biggest drags on portfolios.

๐Ÿฑ) ๐—ช๐—ต๐—ฎ๐˜โ€™๐˜€ ๐˜๐—ต๐—ฒ ๐˜๐—ฎ๐˜… ๐—ถ๐—บ๐—ฝ๐—ฎ๐—ฐ๐˜?

Always determine what the tax implications will be, the โ€œhiddenโ€ fees to investing.

Sometimes the cost of taxes isnโ€™t worth buying in to the investment in the first place.

๐Ÿฒ) ๐—ช๐—ต๐—ฎ๐˜โ€™๐˜€ ๐— ๐—ฌ ๐—ฟ๐—ฒ๐˜€๐—ฒ๐—ฎ๐—ฟ๐—ฐ๐—ต?

Not the news, not what you read in headlines. Always do your own research and come to your own conclusions.

๐Ÿณ) ๐—ช๐—ต๐—ฎ๐˜โ€™๐˜€ ๐˜๐—ต๐—ฒ ๐—ฒ๐˜…๐—ถ๐˜ ๐˜€๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜†?

Know your intentions for the investment. Have a clear plan for selling or holding the investment over time.

And there you have it!

A 7 question checklist to go over before making any investment decision.

Thanks for reading.

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