08-23-2014, 10:57 AM
due dil·i·gence
noun
reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something.
a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.
This is a term that I often find perplexing as I have a tendency to suffer from "The Paralysis of Analysis." As an Aviator I do my share of analysis at work. Decisions are often very clear cut, perhaps because I've been at it for so long. Stock analysis not so much.
Often my self induced confusion is fueled by the many financial opinions out there. This is why I have whittled my list of authors/experts that I follow down to a handful here at DGF and SA.
Often the glass is half full-half empty argument sends me into a tailspin. I know why I invested in Company X over company Y at that brief moment in time. Months later things have changed. If I see some red on the spreadsheet I'm hoping to learn what I did wrong. Or is it simply that Mr. Market did it to me?
So the question for the weekend is "What criteria are you most concerned with when performing your due diligence?"
noun
reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something.
a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.
This is a term that I often find perplexing as I have a tendency to suffer from "The Paralysis of Analysis." As an Aviator I do my share of analysis at work. Decisions are often very clear cut, perhaps because I've been at it for so long. Stock analysis not so much.
Often my self induced confusion is fueled by the many financial opinions out there. This is why I have whittled my list of authors/experts that I follow down to a handful here at DGF and SA.
Often the glass is half full-half empty argument sends me into a tailspin. I know why I invested in Company X over company Y at that brief moment in time. Months later things have changed. If I see some red on the spreadsheet I'm hoping to learn what I did wrong. Or is it simply that Mr. Market did it to me?
So the question for the weekend is "What criteria are you most concerned with when performing your due diligence?"
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
Frederick Buechner