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Jayson Lowe walks through three steps before investing: understand the business, check its track record, and evaluate the leadership team. If it fails any of these, pass.
Jayson Lowe walks through three steps before investing: understand the business, check its track record, and evaluate the leadership team. If it fails any of these, pass.
What's the best decision tree to investing? In other words, how do you know whether or not it's a good investment? I would say first and foremost that you should invest in what you understand. Stay away from anything that's confusing, complex, that you just simply do not know. For example, when I began my investment journey, I looked inside my pantry in the medicine cabinet because I knew that people wouldn't stop eating cereal. They wouldn't stop shaving, they wouldn't stop brushing their teeth. So these are things that I understand. The the second criteria would be track record. So what exactly are you investing in and what is the track record of the organization that is providing that investment opportunity? And then thirdly, and most importantly for me is the leadership team of that organization. What is their track record? And without meeting those three criteria for me personally, then regardless of how attractive the investment opportunity may be, I immediately pass. And so those would be my three criteria on my decision tree as it relates to selecting an investment opportunity.
