Journaling can be a very handy tool for any investor. It is easy to forget the reasons for investing in a particular company. It is easy to forget what got you excited about the company, how the company did against your checklist, what you thought about the company’s future prospects, how the financial statements looked, what impressions did the management leave, etc. Hence, an investor should always write down the reasons for making an investment decision and periodically check if those reasons are still true. An investor should keep an eagle eye on how the company is doing. This will help you hang onto or buy more of the winners and get rid of losers early.

Your investment journal will come in handy when the company misses earnings expectations or the stock moves a lot for no reason or some high-profile management personnel quits, etc. If you have your investment thesis written down, it is easy to compare against it and check if the recent changes have materially changed your investment thesis or not. And you will be able to take action accordingly. Journaling is simple but very powerful. If done right, journaling can significantly improve your portfolio performance.

Also, it is a well-known fact that writing unclogs one’s mind. It prompts one to focus and think deeper, bringing clarity to the subject at hand.

If you prefer digital journaling, you can use the “Create” button on this website to write down your investment thesis and save it as a draft for yourself or you can submit it for publication and stand a chance to win prizes.

Though this is not a comprehensive list, below is a list of items one can journal:

1. Reason/s for investing.

2. How did the company fare against the checklist?

3. What got you excited about the company?

4. How does the company’s future look?

5. How do the financial statements look?

6. Impressions about the management.

7. Risks/Things to watch out for.

Below is a nice graphic version of the above information.