Author Topic: Sources of inspiration  (Read 24597 times)

NeverLoseMoney

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Re: Sources of inspiration
« Reply #10 on: September 01, 2019, 10:26:56 AM »
I follow lots of blogs, a bunch of people on Twitter and read letters from small hedge funds. I'm mostly interested in investors who are in a similar situation as me and who use a similar investment approach, which mostly means they are not managing a lot of money, they invest in micro-caps and they are not part of what I call "the compounder crowd".

In general, I think you should not focus on people who write a lot. They are mostly in the writing business or are just looking to entertain themselves and others. Nothing wrong with that, but it's just not valuable to me. Those writers do usually get the most attention. So I don't tend to follow people who regularly write multiple blog posts a week, dozens of tweets a day, or a 25+ page quarterly hedge fund letter.

I think it's also important to generate ideas of your own. There is some adverse selection in those ideas presented on blogs, because very attractive but illiquid ideas tend to be held back for obvious reasons. You could do the work to try to find them yourself. I do this by running screens, browsing through lists of press releases / filings and doing an A-Z review of all listed companies on a stock exchange (like Greece in 2014 or so). This last approach works best for countries that are going through a crisis.

Then if you find a good investment idea and ultimately invest in it, always check and see who else owns the company. Check the large shareholders list in an annual report or find them on a site like MarketScreener.com. Sometimes you'll be able to find the names of small hedge funds that own the stock and often you'll be able to subscribe to their letters. Sometimes you'll find smart individual investors whose names also show up in other ownership filings when you do a creative Google search. All this can turn into a goldmine for you, because you probably have a similar investment approach to these investors and you'll be more likely to understand their thinking when they present, or are forced to disclose, other holdings.

You can also use this approach for companies that you didn't invest in, but that ended up working out really well. So who owned that company that you passed on last year and only added to your watchlist, but that is now being taken over at a 150% premium? You were at least looking at the company, so you were fishing in the right pond. But who got it right? What else do they own?

Similarly, always Google the company name and see if there are any write-ups by bloggers for any obscure company you're invested in. Try something like "company name +stock +value" and quickly browse through the first 5-10 pages on Google. I've found multiple bloggers writing about small, foreign companies this way, and again, you're more likely to find their ideas valuable because you already share an interest in that company you both own.

When reading blog posts, ask yourself how did the blogger find the idea? The author often won't disclose this, but you can often figure it out yourself by thinking about it a bit. For special situations for example: what search terms might they have tracked in SEC filings to come up with that idea? And if you know they got an investment idea from another blogger or someone on Twitter you can probably figure it out by doing some Googling, or by checking out who they follow on Twitter. That other blogger or person on Twitter can be a source of future investment ideas for you.

This sounds obvious, but it is easy to forget doing stuff like this or to just be lazy. You will generate investment ideas of your own and a list of small funds, bloggers and other investors if you consistently do stuff like this. All this takes time though and most people won't do it.


DooDiligence

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Re: Sources of inspiration
« Reply #11 on: September 03, 2019, 05:46:47 AM »
I forgot to add this guy as a must follow.
Art, humor & finance woven together.

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thowed

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Re: Sources of inspiration
« Reply #12 on: September 04, 2019, 02:36:17 AM »
I'd recommend the substantial resources of:

www.lindselltrain.com
www.fundsmith.co.uk

The former for their Insight features, the latter for their annual letters.

Both are into later Buffett/Phil Fisher, quality franchise type stuff, but they both have their own, fascinating styles.



Gamecock-YT

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Re: Sources of inspiration
« Reply #13 on: September 04, 2019, 07:43:44 PM »
Ralphs

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Re: Sources of inspiration
« Reply #14 on: September 11, 2019, 12:13:48 AM »
[long post]

Good post. One last important thing: you have to put in the time and effort. Follow all blogs, CoBF topics, study all SEC filings, follow up on all interesting tweets, model all interesting companies, etc. The more work you put in the more ideas you will find.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Gregmal

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Re: Sources of inspiration
« Reply #15 on: September 11, 2019, 06:03:50 AM »
Surprised I haven't seen it yet, maybe cuz it isn't a free service, and is more a portal to access information rather than prefab pitches on value stocks, but theflyonthewall is a great resource and modestly priced IMO.

Saluki

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Re: Sources of inspiration
« Reply #16 on: September 26, 2019, 09:01:41 AM »
I like this board a lot and when I am researching a company, in additional to reading the annual reports I read the forum posts from begining to end to make sure i've not missed anything.  Dataroma is a good starting point to filter down to a few ideas and start researching.  Seeking Alpha is hit or miss, but there is a great blog out there (Adventures In Capital) that I stumbled upon when he wrote up one of the stocks that I'm long on (JOE).  I'm currently researching another position that he is long on (SALT) but for now it's still just a very small position for me (Schmuck Insurance). 
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable