Five questions

The organising set of questions every business analysis answers: what the business does, whether it is any good, what could go wrong, what it is worth, and what to do about it.

Their value is that they impose an order. Valuation comes fourth, after three questions about the business itself. Much amateur analysis begins and ends at a multiple.

This sequence also matches how conviction is built. Understanding precedes judgement, and judgement precedes valuation. Valuation in turn precedes action.

Answer them in order, because the order is the method.