Investment Screening Systems
One of the most interesting examples of screening in the world of investment is the investment decisions of Warren Buffett in recent years. His screening method focuses on only purchasing securities that provide excellent value for the cost of investment in addition to a strong industry position.
Unfortunately, there are no clear cut initial screening systems available “off the shelf” in the investment world in the same way as there are starting hand tables in Texas Hold’em. Instead, there are a number of screening system guidelines available on the internet which can be used as a basis for your screening filter. Many of these guidelines are based on the investment strategies of well-known investors who have made their methods public. There are also many screening tools available on the internet – some of them free – that will enable you to develop your own screening system.
Therefore, when you have gained the benefits of using a screening system for your Texas Hold’em starting hand selection, you will be ready to develop your own screening system for your investment decisions. This should be based on a combination of sound investment theory combined with your own attitude to risk. As an example, Buffett would often make investment based on a “safety margin” of some sort for each stock he purchased. This would provide him with some downside protection in the event of the investment not performing as he expected. You need to decide if you need such a safety margin built into your own investment decision process and then develop your screening system appropriately.