Great post. Thanks for the insights about your investing process. Would it be helpful to add in a process that identifies (once you’ve found a stock that deserves further research), which type of stock you are analysing/valuing i.e growth stock, value stock etc? I’ve seen one that the Brian’s from Longterm Mindset use which helps identify which part of the maturity cycle a particular business is in, which then informs the valuation method.
yeah that's good idea, but the way i do valuation is very basic - My valuation method/principle remains the same for any kind of business in theory :
Business Value = Total cash it will produce over lifetime in today’s value
but it is 100% worth understanding which part of the maturity cycle a particular business is in to come to conclusion about how much cash it will generate in future.
Great post. Thanks for the insights about your investing process. Would it be helpful to add in a process that identifies (once you’ve found a stock that deserves further research), which type of stock you are analysing/valuing i.e growth stock, value stock etc? I’ve seen one that the Brian’s from Longterm Mindset use which helps identify which part of the maturity cycle a particular business is in, which then informs the valuation method.
yeah that's good idea, but the way i do valuation is very basic - My valuation method/principle remains the same for any kind of business in theory :
Business Value = Total cash it will produce over lifetime in today’s value
but it is 100% worth understanding which part of the maturity cycle a particular business is in to come to conclusion about how much cash it will generate in future.