My Investment Process
It starts with a 6 parts diagram.
1⃣Signal: idea origination.
2⃣Filtering: To kill, watchList or research the idea
3⃣Research: DD
4⃣Portfolio Mgt: enter/exit, sizing
5⃣Portfolio Maintenance: continuous eval on/off ER seasons.
6⃣Execution
🧵
#Investing
It starts with a 6 parts diagram.
1⃣Signal: idea origination.
2⃣Filtering: To kill, watchList or research the idea
3⃣Research: DD
4⃣Portfolio Mgt: enter/exit, sizing
5⃣Portfolio Maintenance: continuous eval on/off ER seasons.
6⃣Execution
🧵
#Investing
Principles:
🟢Process is NOT static, it is a living one. I continuously evaluate/improve it. Thus welcome u feedback.
🟢Measurement is prerequisite to improvement - I try to measure each moving piece.
🟢Post mortem often, and embrace mistakes.
🟢Process is NOT static, it is a living one. I continuously evaluate/improve it. Thus welcome u feedback.
🟢Measurement is prerequisite to improvement - I try to measure each moving piece.
🟢Post mortem often, and embrace mistakes.
1⃣Signal-idea generation.
🟢I have 5-6 core areas and follow 8-12 stocks in each area. It is my organic idea gen source.
🟢events: macro data, insider buy, etc
🟢I follow like-minded(better) investors.
Signals are not equal. Ideal when multiple ones pointing to 1 stock.
🟢I have 5-6 core areas and follow 8-12 stocks in each area. It is my organic idea gen source.
🟢events: macro data, insider buy, etc
🟢I follow like-minded(better) investors.
Signals are not equal. Ideal when multiple ones pointing to 1 stock.
2⃣Filtering
A process to quickly decide whether to kill the idea or add to watch list (mental db), or a deep dive.
Efficiency is key here - I set 4H (1/2 day), and usually a kill decision is made within first 2H.
A process to quickly decide whether to kill the idea or add to watch list (mental db), or a deep dive.
Efficiency is key here - I set 4H (1/2 day), and usually a kill decision is made within first 2H.
3⃣ Research
My goal is to be informed, know its history, people, product, eco-systems, and try to delay having a view as much as possible.
When I read someone's thesis, I look for things that I am unware of. (that is also a tell sign if a 10 page thesis got nothing new to me)
My goal is to be informed, know its history, people, product, eco-systems, and try to delay having a view as much as possible.
When I read someone's thesis, I look for things that I am unware of. (that is also a tell sign if a 10 page thesis got nothing new to me)
4⃣ Portfolio Mgt
5 to 30 is a reasonable range for a 1 person shop. When I add a company to my portfolio, I prefer to slowly ramp up as I monitor the company (ER, conference, industry data). I like to see opportunity when price action deviates from biz results.
5 to 30 is a reasonable range for a 1 person shop. When I add a company to my portfolio, I prefer to slowly ramp up as I monitor the company (ER, conference, industry data). I like to see opportunity when price action deviates from biz results.
5⃣ Portfolio Maintenance
I am a long term investor, but I don't believe in #NeverSell.
Maintenance is to continue to evaluate/monitor my portfolio, and watch-list companies.
When my thesis breaks, I sell.
When a watch list co. offers more attractive oppo, I swap.
I am a long term investor, but I don't believe in #NeverSell.
Maintenance is to continue to evaluate/monitor my portfolio, and watch-list companies.
When my thesis breaks, I sell.
When a watch list co. offers more attractive oppo, I swap.
I can dive into details of each step. I would like to know what you are interested in, or have questions about. As always I appreciate your feedback.
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