decision journal
decision journal: A record of why an investment decision was made, what evidence supported it, and what would later prove it right or wrong.
Plain-English Explanation
A decision journal is where the team writes down the reasoning behind a buy, hold, trim, reject, or exit. It captures the thesis, the assumptions, the risks, and the signals that should trigger a later review.
Why It Matters
Without a decision journal, hindsight quickly rewrites history. A written record improves learning because the team can compare the original logic with what actually happened and see whether the process, not just the outcome, was sound.
Next Step
Add a lightweight journal entry template to every material investment decision and require it before the position is considered fully documented.
Examples
- Before increasing a position, the analyst records the updated thesis, the evidence behind the change, the main risk, and the trigger that would invalidate the decision.