Brian Feroldi: Using Checklists To Find Compounders

Brian Feroldi is an investor and writer for the Motley Fool. His main interests involve the healthcare and technology industries. His goal is to buy the highest quality companies he can find, then hold on to let compounding do its thing. We spend an hour discussing his start in investing, biggest mistakes, and the checklist he uses to analyze every investment idea.

I love Brian’s systematic approach to analyzing companies. It allows investors to understand a roughly right range of company quality. It also allows you to track the quality of the business over time with hard numbers.

There’s no guessing.

The most attractive part of the strategy is Brian’s Gauntlet. The Gauntlet is a checklist that deducts points for negative attributes of a business like:

  • Wonky accounting
  • Foreign currency risk
  • Customer Concentration

I’m running the checklist on all my holdings to see how they stack up. Going forward, it’s something I’d like to add to my own investment process.

Try it for yourself and let me (and Brian) know how you like it. As Brian says in the podcast, the checklist gets better with more feedback.

I loved this conversation. I learned a ton and I know you will too.

Here’s the time-stamp:

  • [0:47] Brian’s Intro To Investing
  • [4:43] Writing For The Motley Fool
  • [6:36] Personal Finance & Investment Strategy
  • [10:45] Brian’s Biggest Losing Trade ($KMB)
  • [16:34] Creating The Stock System Checklist
  • [22:19] Look For 70s and 80s
  • [25:50] How Brian Analyzes Management
  • [29:32] Adding To Research Process
  • [32:01] Mercado Libre $MELI Checklist
  • [49:02] Running $MELI Through The Gauntlet
  • [54:05] Brian’s Favorite New Ideas
  • [58:00] Closing Questions

If you want to learn more about Brian Feroldi, check out the links below:

Let me know what you think in the comments below! Who do you want me to have on the show next?

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Brandon Beylo

Value Investor

Brandon has been a professional investor focusing on value for over 13 years, spending his time in small to micro-cap companies, spin-offs, SPACs, and deep value liquidation situations. Over time, he’s developed a deeper understanding for what deep-value investing actually means, and refined his philosophy to include any business trading at a wild discount to what he thinks its worth in 3-5 years.

Brandon has a tenacious passion for investing, broad-based learning, and business. He previously worked for several leading investment firms before joining the team at Macro Ops. He lives by the famous Munger mantra of trying to get a little smarter each day.


Investing & Personal Finance

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He started out in corporate economics for a Fortune 50 company before moving to a long/short equity investment firm.

With Macro Ops focused primarily on institutional clients, AK moved to servicing new investors just starting their journey. He takes the professional research and education produced at Macro Ops and breaks it down for beginners. The goal is to help clients find the best solution for their investing needs through effective education.

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Volatility & Options Trader

Former trade desk manager at $100+ million family office where he oversaw multiple traders and helped develop cutting edge quantitative strategies in the derivatives market.

He worked as a consultant to the family office’s in-house fund of funds in the areas of portfolio manager evaluation and capital allocation.

Certified in Quantitative Finance from the Fitch Learning Center in London, England where he studied under famous quants such as Paul Wilmott.

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Macro Trader

Founder and head macro trader at Macro Ops. Alex joined the US Marine Corps on his 18th birthday just one month after the 9/11 terrorist attacks. He subsequently spent a decade in the military. Serving in various capacities from scout sniper to interrogator and counterintelligence specialist. Following his military service, he worked as a contract intelligence professional for a number of US agencies (from the DIA to FBI) with a focus on counterintelligence and terrorist financing. He also spent time consulting for a tech company that specialized in building analytic software for finance and intelligence analysis.

After leaving the field of intelligence he went to work at a global macro hedge fund. He’s been professionally involved in markets since 2005, has consulted with a number of the leading names in the hedge fund space, and now manages his own family office while running Macro Ops. He’s published over 300 white papers on complex financial and macroeconomic topics, writes regularly about investment/market trends, and frequently speaks at conferences on trading and investing.

Macro Ops is a market research firm geared toward professional and experienced retail traders and investors. Macro Ops’ research has been featured in Forbes, Marketwatch, Business Insider, and Real Vision as well as a number of other leading publications.

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