Reviewing an investment

The review stage of InvestOps can occur at any point after the investment has exited. The purpose of this stage is to measure performance and document feedback to inform future investment decisions.

Stage input

This stage considers all artifacts produced in other stages, including the view, trade plan, order history, and anything else generated during the process.

An honest review

It’s a good idea to review all investments after they exit. The easiest way to do this is to walk through the view and trade plan with a critical eye. The purpose here is not to create fault or blame, but rather to capitalize on an opportunity to improve. It should be assumed that every decision was made with the best intentions at the time, but that sometimes things end up turning out differently than expected.

Whether or not the investment turned a profit, there are some important considerations that every investment should conclude with.

Reviewing the view

• Did the view turn out to be correct?
• Did the expectations play out on the timeline expected?
• Was the quantitative research properly interpreted?
• Was the opinion research accurate?

Reviewing the trade plan

• Was the trade plan the best strategy for the view?
• Was the trade entry executed as designed?

Monitoring and adjusting the investment

• Was the investment monitored effectively?
• Were the right adjustments made?
• Did the investment exit at the right time and price?

Other opportunities for improvement

• Was the process followed consistently?
• Were there process or tooling gaps?

It can also be helpful to reassess the investment’s trade history during the review process, especially when multiple adjustments were made along the way.

Stage output

The output of this stage is a postmortem review of the investment. It should include an analysis of the accuracy of the original view, trade plan, and decisions made along the way. It’s a good practice to craft this review in the form of lessons learned for future reference.

Postmortem Review

Looking for a review template to help you get started? Check out our free postmortem review in the next topic.