Investment Due Diligence 101 Tutorial Guide

Investment Due Diligence Requires Asking Tough Questions, Because What You Don't Know About An Investment Can Hurt You

Investment due diligence is what separates professional investors from novices.

Thoroughly investigating each investment, broker and money manager before handing over your money can protect you from catastrophic loss and help you make more profitable, informed investment decisions.

The primary objective of any due diligence checklist is to answer four basic questions:

  • What are the expected investment return characteristics?
  • What is the investment risk profile?
  • Are the people competent?
  • Are the people honest?

Unfortunately, performing investment due diligence is not easy. Investment styles vary widely, reporting results aren't standardized, and accessibility to key personnel so that you can get your questions answered can be difficult.

And if that weren't enough, due diligence takes more time and effort than most people want to spend on the process.

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Fortunately, there is a solution: an efficient short-cut for due diligence is available through the internet.

It's now possible to complete preliminary, basic due diligence on virtually any investment, broker or money manager for almost no cost and a few clicks of a mouse. This can save tremendous time and effort by quickly eliminating obvious frauds and other unsuitable investments.

By starting your due diligence process with an internet based checklist you can save valuable time and money allowing you to focus more thorough due diligence only on investments meriting a second look.

See the articles below for the information you need to develop your own, personalized due diligence process:

Below you’ll find a listing of our most recent articles about investment due diligence providing you with additional strategies and information so you can take the next step…

Five “Must Ask” Due Diligence Questions Before Making Any Investment

Investment due diligence separates the amateurs from the pros. Learn the five "must ask" due diligence questions to improve profits.

An ounce of prevention is worth a pound of cure. Cliche, but true. And nowhere is it more true than investment due diligence. I’ve saved my coaching clients hundreds of thousands of dollars using the exact techniques taught in this article to easily detect bad deals before a single penny was lost. Use this article to help you avoid the next big investment mistake…

Top 26 Warning Signs Of Investment Fraud

In order to protect your assets, you should be aware of these 26 warning signs of investment fraud.

Discover the top 26 warning signs of investment fraud before they cost you money. You’ll learn the sneaky tactics you need to look out for, the essential knowledge you need to avoid investment fraud, and 5 simple principles that will safeguard your portfolio from investment con-artists. Forewarned is forearmed…

Peer To Peer Lending Review – Dangers Revealed

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In a world of zero percent interest rates peer to peer lending can look mighty tempting. Investor’s are starving for yield and P2P lending companies have risen to satisfy that need. Don’t be deceived. Look behind the emotional facade at default rates, unknown risks, operating difficulties and more so you can make a smart investment decision…

Avoid Losses: 5 Ways Investment Research Lies To You

Here are 5 ways to detect bad investment research so you can avoid losses.

Things are seldom as they appear. Nowhere is this more true than investment research. Every day another trading system or sure-fire investment strategy is published. They always look good on the surface – impressive statistics, testimonials, lots of social proof. You’ll find them in best-selling books, or published by authority figures like professors, or endorsed by a trade journal. None of that matters because it can still be total hogwash. Here is how you sort fact from fiction to protect your portfolio…