Meaning There are 3 types of personal edges: 1. Homework: Most retail investors simply don’t do it. CNBC, ET Now and Twitter are interesting. Earnings calls, and annual reports are boring. 2. Value Investing Theory: Sell-side analysts are awesome at homework. In fact, if you listen to concalls, you’ll realize how thoroughly they cover a …
Note: It’s something Warren Buffett wouldn’t look at. Because it’s actually an element of speculation seeping into investing. A. Low Quality 1. Capital Cycle Supply falling. Capacity exiting. Capacity utlizations low. Stock price at a multi-year low. 2. Earnings Rebound Earnings suddenly improving in a quarter. Example: Metal stocks like Tata Steel and NALCO in …
They are tough.
Such sectors – even if promising – are my blind spots. But there’s no reason you can’t make them simple.
Here’s an attempt to do so: