Understand your inclination and start documenting your processes

You must understand what appeals to you and then understand what works.

The fact is that everyone is different.

  • Some like to look for a treasure like an archaeologist by reading every single annual reports that come their way, digging for more information to link up with the rest.

  • There are people who do not want to be affected by bias and have computer programs telling them on what and how best to invest.

  • Then, there are the stamp collectors who are proud to say they had own such and such businesses while also collecting wonderful stories and friends as they continue their life.

  • Others believe in building a network of experts so that the investment network could grow and start benefiting everyone within.

What if we told you that the above steps are how we invest?

We scavenge through tons and tons of ideas and annual reports to generate ideas. The ideas which are generated by humans are put through a program to determine if it is really worth investing in. The ideas are run through with people we trust.

If we find great businesses, like rare stamps we will keep them tuck away forever. Those businesses that are not as rare will be sold once someone offers us a good/profitable price.

We are still in the midst of building up our network. This whole blog had been our initial effort in creating our network of investors. So if you want to be part of this journey, do subscribe to be in our network. *

Some investor envision themselves as a

  1. Deep Value Investor

  2. Growth Investor

  3. Event Driven Investor

“The major commonality among our biggest winners is a starting point of low expectations. A stock’s performance depends on fundamentals relative to expectations.”

-Bill Miller

We have extensively quoted Bill Miller in this blog and we are obviously big fans of his. If we need to categorise ourselves then it may be Low Expectation Investing. As long as the investing community had sort of given up or have no interest on a business, that is when we will come in to evaluate and possibly invest.

Your investment process is a reflection of the life you had lead.

So what type of investor are you and what processes you have?

If your answer is NIL, it is time to do some writing.

*Other than just inviting like minded investors into our circle, we are in the midst of instituting an additional step into our investment process. We are writing an article to invalidate our investment thesis before the investment. The investment article would help us to journal down every step of our investment process and lessen our mistakes.

If you wish to receive more regular updates on what we are working on, do join our telegram channel.

If you have any comments, just hit the comment button below.

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