Marketing & Finance
Investment Comparison Matrix
Compare options against weighted criteria and get a ranking you can explain.
- Time: 20 to 45 min
- With: Decision makers
- You get: A ranked list with the reasoning visible
How to use this worksheet
- Define four to seven criteria that matter (return, risk, time, strategic fit) and give each a weight. Bigger number means more important.
- Add your options and score each one against every criterion from 1 (poor) to 10 (excellent). Score risk so that 10 means low risk.
- Read the ranking, then change the weights a little: if the winner changes, the decision is sensitive to your priorities and worth discussing.
Criteria and weights
Higher weight means more important. Weights are relative.
Prompts
Ask yourself
- Which criterion would you never give up?
- Are two criteria really the same thing?
Scores
Score each option from 1 to 10 per criterion.
Prompts
Ask yourself
- Are your scores based on data or on a feeling? Mark the guesses.
Write down where the numbers come from and what would change them.
Prompts and example
Example
Weights agreed in the investment committee on 3 Nov.
Ranking
Before you finish
- Weights add up to the priorities you would state out loud.
- Scores use the same scale for all criteria (10 = best).
- You tested whether a small change in weights changes the winner.
About weighted scoring
A weighted scoring model turns a messy decision into explicit trade-offs. The weighted score is the sum of score x weight divided by the sum of weights.
The model does not decide for you. It shows what you value and where the options differ, which is what a good discussion needs.
Recommended reading
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- A Random Walk Down Wall StreetBurton Malkiel
Comprehensive guide to investing strategies, portfolio theory, and evaluating different investment vehicles and opportunities.
- Common Sense on Mutual FundsJohn C. Bogle
Essential wisdom on investment selection, comparison, and building a successful long-term investment strategy.