Comments on: Dubious Research (Investor Attitudes Edition) http://www.nakedcapitalism.com/2007/07/dubious-research-investor-attitudes.html Sun, 22 Nov 2009 23:47:30 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: David http://www.nakedcapitalism.com/2007/07/dubious-research-investor-attitudes.html#comment-225 David Mon, 16 Jul 2007 16:05:00 +0000 http://www.nakedcapitalism.com/2007/07/dubious-research-investor-attitudes-edition/#comment-225 You are absolutely correct. I don't survey often, but one thing that I try to do is impose a constraint on decision-making. Here's how such a survey would have looked like for the example that you cite.<br/><br/>You are creating a scoring system for how you choose companies to invest in. You have 100 points to allocate between the following issues:<br/><br/>Corporate Governance<br/>Current Earnings Power<br/>Likely Earnings Growth<br/>Inexpensiveness versus Replacement Cost<br/>Barriers to Entry<br/>Ethics of the Business, and those who run it<br/>Balance Sheet Quality<br/>Earnings Quality<br/>(Etc., but limit it to ten choices.)<br/><br/>How do you allocate your points?<br/><br/>Survey like this force discipline on the answerer, because it reflects decision-making in the real world. There are many variables, and choices are constrained.<br/><br/>David Merkel<br/>Alephblog.com You are absolutely correct. I don’t survey often, but one thing that I try to do is impose a constraint on decision-making. Here’s how such a survey would have looked like for the example that you cite.

You are creating a scoring system for how you choose companies to invest in. You have 100 points to allocate between the following issues:

Corporate Governance
Current Earnings Power
Likely Earnings Growth
Inexpensiveness versus Replacement Cost
Barriers to Entry
Ethics of the Business, and those who run it
Balance Sheet Quality
Earnings Quality
(Etc., but limit it to ten choices.)

How do you allocate your points?

Survey like this force discipline on the answerer, because it reflects decision-making in the real world. There are many variables, and choices are constrained.

David Merkel
Alephblog.com

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