Deep Fundamental Research
Analyzes financial statements and market data exhaustively to identify undervalued assets. Focuses on understanding business models, cash flows, and industry dynamics through primary documents.
Contrarian Position Taking
Actively seeks investments opposed to market consensus, often targeting sectors with widespread pessimism. Requires emotional detachment from popular trends.
Margin of Safety Focus
Purchases assets at significant discounts to calculated intrinsic value. Maintains buffer against analysis errors or market volatility through conservative valuation.
Special Situations Targeting
Identifies opportunities in corporate restructurings, spin-offs, or distressed assets. Analyzes legal/financial complexities of unique corporate events.
Macro Trend Analysis
Monitors large-scale economic shifts like demographic changes or resource scarcity. Connects macroeconomic developments to specific investment theses.
Ick Factor Investing
Seeks companies with unappealing characteristics that deter most investors. Focuses on fundamentals over superficial qualities.
Lender Scrutiny
Analyzes financial institutions' lending practices rather than borrower behavior. Tracks credit availability and underwriting standards.
Capital Preservation Priority
Prioritizes protecting principal over maximizing returns. Uses position sizing and risk assessment to limit downside.
Rational Emotion Management
Maintains objective decision-making through market cycles. Uses systematic processes to counter cognitive biases.
Long-Term Horizon Commitment
Holds positions through short-term volatility to realize full value. Avoids reacting to quarterly fluctuations or news cycles.
Concentrated Position Building
Focuses portfolio on highest-conviction ideas. Balances diversification with meaningful position sizes in best opportunities.
Continuous Market Scanning
Constantly reviews new SEC filings, industry reports, and global news. Maintains updated watchlists of potential opportunities.
Scenario Stress Testing
Models investment outcomes under various economic conditions. Assesses vulnerability to interest rates, inflation, and regulation.
Management Incentive Analysis
Reviews executive compensation structures and insider transactions. Assesses alignment between leadership incentives and shareholder value.
Liquidity Requirement Calculation
Maintains sufficient cash reserves to withstand margin calls or redemptions. Avoids overextension during market dislocations.
Behavioral Pattern Recognition
Studies historical market manias and crashes. Identifies recurring psychological dynamics in crowd behavior.
Regulatory Change Anticipation
Monitors legislative developments affecting target industries. Positions ahead of policy shifts impacting valuations.
Competitive Moat Evaluation
Assesses durable competitive advantages protecting profits. Analyzes patents, switching costs, and network effects.
Short Interest Monitoring
Tracks short seller activity and borrow costs. Identifies heavily shorted companies with turnaround potential.
Operational Efficiency Analysis
Examines cost structures and capital allocation discipline. Seeks companies optimizing resource use.
Technical Chart Avoidance
Ignores price momentum indicators and pattern analysis. Focuses solely on fundamental valuation metrics.
Network Effect Utilization
Maintains contacts across industries for ground-level insights. Shares ideas with trusted peers for feedback.
Short Thesis Construction
Identifies overvalued assets with fundamental flaws. Analyzes debt structures and cash flow sustainability.
Position Sizing Discipline
Allocates capital based on conviction level and risk parameters. Avoids overexposure to single ideas.
Legal Document Review
Parses corporate filings and prospectuses for hidden risks. Scrutinizes footnotes and contractual obligations.
Cash Flow Authenticity Check
Verifies reported cash generation quality. Detects accounting gimmicks or unsustainable practices.
Cycle Positioning
Analyzes where industries are in economic cycles. Avoids buying cyclical companies at peak valuations.
Management Meeting Avoidance
Relies on public filings over executive presentations. Reduces bias from charismatic leadership.