The 7 Decisions Every Investor Faces (Part 1)

Neil Woodford has been answering questions about investing for 35 years – and every one of them comes down to seven decisions. In part one of this three-part series, Neil and Jon Adair cover the funnel: the three decisions that take you from every company in the world down to a shortlist worth owning. You'll learn why reported profit tells you almost nothing about whether a business is any good, the only three numbers Neil would keep if forced to choose (PE, debt to EBITDA, and return on capital employed), how to judge a moat and a management team, and why Neil calls valuation "an educated, informed guess" – and means it as a compliment. Part 2 covers position sizing and portfolio construction. Part 3: when to sell, and how to hold your nerve. Subscribe so you don't miss them. Read the framework: The Seven Decisions, Explained – every piece on Noise Cancelling is tagged to the decision it belongs to:  The Noise Cancelling app is free to join, and it will read Neil's pieces to you:  This video is for information and education only. It is not investment advice, and nothing in it is a recommendation to buy or sell any investment. Capital is at risk. Seek independent financial advice before making investment decisions.