The Value Chain is a sequence of inputs that are utilised in creating a final product or service. It can also be observed from an industry value chain perspective that makes an entire sector functional. A value chain comprises several business activities and processes that a company must undertake to sell a finished good or… Continue reading
The Scuttlebutt Method of Investing can be a critical component of the Investment Process. The idea behind “Scuttlebutting” is to collect important pieces of information from a variety of resources. It is an unorthodox way of gathering intel that forms a Qualitative analysis approach to deep research. Moving beyond the conventional quantitative, financial and valuation… Continue reading
As a part of a rigorous investment process, it is important to assess management quality before buying shares in a company. There are many ways to research and analyse qualitatively how the management team stacks up. If you are entrusting your capital to a company, it is only fair to know who will lead that… Continue reading
⚠️ This is one of my longer blogs to help break down competitive advantage. Grab a coffee and buckle up. A competitive advantage, which is also known as an economic MOAT, is a distinguishing characteristic or feature of a business that enables it to generate profits above the average and prevent competitors from significantly affecting… Continue reading
Search the world to avoid Home Country Bias. Investors should not hesitate to search the world in the hunt to find the best investment opportunities. Many investors tend to invest only in the companies and exchanges that are familiar to them. This is known as Home Bias Investing. Although there is nothing wrong with investing… Continue reading
Your watchlist is an essential tool for your investment process. It is a list of companies that meet your criteria and includes both your current positions and potential future investments. This is where the real work begins – waiting, observing, and reading constantly to identify the right opportunities to invest. TABLE OF CONTENTS: What is… Continue reading
We have previously discussed various ways to generate investment ideas, including filtering and screening for stocks and developing hunting grounds. To sum up these areas, the phrase that best captures the core ideology behind the relentless search for investable ideas is “Turning over Rocks”. This phrase, coined by legendary investor Peter Lynch, is something I… Continue reading
Investors need to manually go beyond screening for ideas and the idea generation funnel. After this first step, they then need to form their “investment hunting grounds,” which are the pool of companies within their “Investable Universe“. TABLE OF CONTENTS: What are Investment Hunting Grounds? Not all publicly listed companies will be suitable for an… Continue reading
Extending on from the Generating Investment Ideas blog let’s take a closer look at the filtering and screening process. Filtering is the process of using a set of fundamentals or criteria to narrow down an investment universe using a screener. There are several screeners available that are free of use. However, I am currently using… Continue reading
⚠️This is one of my longer blogs to help show how the investment strategy is formed in stages. Grab a coffee and buckle up. An investment strategy is a plan that helps investors allocate their financial resources in a well-thought-out and written-down manner to achieve their financial goals. It summarizes what you invest in after… Continue reading
