The Investment Process is a systematic approach to investing, which can be useful for private investors who want to succeed. It’s not only reserved for professionals. You cannot rely on intuition alone in investing. You need a logical reason for why you invest in certain ideas and not others, based on reasoning and facts. This… Continue reading
The Investment Checklist is a valuable resource that private investors should consider adopting as an essential part of their Investment Process. A checklist is used at the bottom of the filter, after generating investment ideas, but before finalizing the Investment Thesis. Its purpose is to act as a pre-thesis due diligence process to quickly sift… Continue reading
An Investment Thesis is a written document that outlines why you are investing in a particular idea. It is grounded in your research and analysis and forms the cornerstone of the Investment Process. The Investment Thesis will help to explain with reasoning why you believe a certain investment is viable and how you came to that… Continue reading
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
