Thread by @trengriffin

1/ Being on a board of directors with @wolfejosh has been an amazingly enjoyable and educational experience. He's always prepared, informed, contributes and has fun.

Josh believes: "edge can derive from informational, analytical or behavioral sources." 25iq.com/2018/07/07/les…

2/ If you work on a team that runs a business you can acquire an edge versus people who only invest and don't have your source of edge.

"To make money, you must find something that nobody else knows, or do something that others won’t do."

Peter Lynch 25iq.com/2013/07/28/a-d…

3/ One of my sources of edge is the ability to value certain businesses by using DCF analysis. That's what anyone running a business learns to do. If you do this for decades you get better at it.

Is it easy? No. Can I do every company? No. Do I have an edge in doing it? Yes.

4/ Anyone who says they've done a DCF for scores of stocks is fooling themselves or raising more money from investors. The greater your focus, the better your DCF. But it's hard to raise money by investing in just a few stocks. People can just copy your work without paying fees.

5/ An easier way to raise money is to have a portfolio of many stocks based on ratios which are a shortcut for a DCF (i.e., the assumptions are buried). Embrace complexity!

People do trade stocks without valuing the business, but it's not a source of edge (or fun) for me. Pass!

6/ Almost everyone uses heuristics and investing is no exception. Some people drill down fundamentally on a small number of stocks after the rough heuristic-based sort is done. My drill down on fundamentals is DCF analysis. It's not the only way to invest, but it's my way.