Investment Idea Validator
The Investment Idea Validator is our flagship tool for removing emotional bias from your investment process. Instead of asking "Do I like this stock?", it forces you to score an idea across five deterministic dimensions.
Core Methodology
Our framework is inspired by Graham-Dodd value investing principles and Warren Buffett's "Circle of Competence." It uses a qualitative-to-quantitative scoring system to generate a Conviction Score.
Understandability
Can you explain the business model to a 10-year-old?
Competitive Moat
Does the company have defensible advantages like brand or network effects?
Financial Health
Are the debt levels, cash flow, and margins stable and growing?
Valuation Margin
Are you paying a fair price relative to intrinsic value?
Risk Mitigation
How protected is the company from disruption or macro shocks?
Input Guide
Ticker Search (Optional)
Enter a stock ticker (e.g., AAPL) to load deterministic scoring heuristics if available in our database.
Dimension Sliders
Score each dimension from 1 (Weak) to 5 (Strong). Be brutally honest; the tool is only as good as the integrity of your inputs.
Coach Mode Toggle
Enable Coach Mode to see specific tips for each dimension to help you refine your scoring.
Interpreting Results
The Conviction Score
- 80% - 100%: Strong ConvictionFoundational ownership candidate.
- 60% - 79%: Reasonable IdeaRequires further due diligence.
- 40% - 59%: SpeculativeHigh dependency on external factors.
- Below 40%: High RiskConsider the "Too Hard" pile.
A Note on Bias
Confirmation bias is the biggest risk when using this tool. We often score ideas we already "like" higher than they deserve. Try to "invert" your analysis: seek reasons why the idea might fail rather than why it will succeed.