Tagging for Scoring

Another creative way to use tagging is for scoring. Below is some commentary from our co-founder Jake on how he uses tagging for scoring in his process:

I often use Journalytic’s tagging functionality to create a scoring system. For instance, let’s take capital allocation. I can add a tag to data points I record to help build a sense of the quality of management’s capital allocation decisions.

In my scoring, I’ll add the tag #capitalallocation1 when I see it done well. Let’s say a quarter of strong buybacks done at favorable prices.

#capitalallocation2 is a neutral action. Maybe I’m not sure if it was a good move or not yet.

#capitalallocation3 represents bad moves.

The color coding allows me to more quickly assess management’s abilities. As I look through my notes for an idea, I can quickly scan to get a rough approximation of scoring. Lots of green means they might have some skill at this. Lots of red… could be a problem here. Yellow could be the jury is still out.
My assessment is built from the ground up of scoring singular observations, hopefully summing to an accurate picture.