123 - Maintenance Due Diligence

Mental Models discussed in this podcast:

• Due Diligence

Please review and rate the podcast

If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience. 

Follow me on Twitter and YouTube

Twitter Handle: @TreyHenninger

YouTube Channel: DIY Investing

Support the Podcast on Patreon

This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron.

Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode123

Due Diligence Thought Process

• I can't accurately predict the future, so I know I will make mistakes, but I do make estimates on future performance AND management decision-making. Therefore, I attempt to monitor where future performance deviates from my estimate. That allows me to steadily inform myself whether the company is a mistake OR a success from an investment process standpoint. 
• Short: I want to know where I was wrong when I predicted the future and to validate or destroy my thesis. 

Summary:

Maintenance due diligence is a critical skill that experienced investors practice in order to minimize potential mistakes after buying a stock. This ongoing effort is spent validating or proving wrong the original stock buy thesis.