Money and Finance
- A Quick Diversification Thought...
An old post worth reviewing: Warren Buffett on Diversification - 1966 I was reminded of Buffett's thoughts as I was once again thinking about optimal portfolio size for the "know something" investor. If you can consistently find ideas where...
- Filters
Below is an investment letter I wrote in February of last year. The essence of what I was trying to get at is essentially what Sanjay Bakshi was saying (though more clearly and elegantly than I did) in his recent interview with Vishal Khandelwal...
- Michael Shearn Quote
"When you do not have investment opportunities that you are ready to act on, you can use your time to prepare for future opportunities. When you identify a unique business or superior management team, add the business to your inventory of ideas or watch...
- Pricing Power
From the book The Investment Checklist by Michael Shearn. “Businesses that have pricing power typically have several characteristics in common such as high customer- retention rates; their customers spend a small percentage of their budget on the business’s...
- Competitive Advantages
These quotes are from the book The Investment Checklist by Michael Shearn. "Competitive advantages are less sustainable when they are affected by changes in technology or if they are in rapidly emerging industries. Changes in technology threaten...
Money and Finance
Michael Shearn on filtering investment ideas
I think having the right filters is one of the most important things in the investment process, which is also something I tried to express is THIS post as well.
"When filtering through the many investment opportunities the stock market is offering at any given time, it is important for you to establish criteria of the types of businesses and management teams you are searching for. These criteria serve as a filter, so you don’t have to review thousands of investment opportunities and therefore can reject investment ideas quickly....Your criteria can be as simple as looking for a simplified business with a large market opportunity, managed by a great management team, and trading at a low price. You can also set criteria of what you do not want to invest in. For example, you may want to avoid businesses that have a high dependency on commodity resources, such as exploration and production (E&P) businesses, because oil prices are difficult to forecast. By articulating and following strict criteria, you can put the odds of making a successful investment in your favor." -Michael Shearn, The Investment Checklist
- A Quick Diversification Thought...
An old post worth reviewing: Warren Buffett on Diversification - 1966 I was reminded of Buffett's thoughts as I was once again thinking about optimal portfolio size for the "know something" investor. If you can consistently find ideas where...
- Filters
Below is an investment letter I wrote in February of last year. The essence of what I was trying to get at is essentially what Sanjay Bakshi was saying (though more clearly and elegantly than I did) in his recent interview with Vishal Khandelwal...
- Michael Shearn Quote
"When you do not have investment opportunities that you are ready to act on, you can use your time to prepare for future opportunities. When you identify a unique business or superior management team, add the business to your inventory of ideas or watch...
- Pricing Power
From the book The Investment Checklist by Michael Shearn. “Businesses that have pricing power typically have several characteristics in common such as high customer- retention rates; their customers spend a small percentage of their budget on the business’s...
- Competitive Advantages
These quotes are from the book The Investment Checklist by Michael Shearn. "Competitive advantages are less sustainable when they are affected by changes in technology or if they are in rapidly emerging industries. Changes in technology threaten...