Aug 27, 2023Liked by Giuliano

I wanna touch on one aspect you mentioned in the article.

I don’t think hundreds of hours need to go into researching a company for an investment. For such extensive articles like yours, yeah perhaps.

But for myself definitely not. I study companies deeply, take notes, and have my checklist and process.

Even though it’s a hobby for me, I don’t want to oversee the time I put into this stuff. In the end, the goal of a portfolio is to compound wealth to accomplish some long term personal goal. Therefore, it can be compared to work as there is money involved, too. So, I think that you need to somewhat "offset“ time spent researching companies in dollars (e.g., one’s personal salary) with the return you get. And then, there should still be some alpha - otherwise, why not just buy an ETF?

I doubt that this calculation is a profitable one for retail investors if they would spend hundreds of hours on a single company.

Just my two cents on the time spent aspect that you’ve mentioned, my man.

And w.r.t. management analysis, I think next to capital allocation metrics, watching CEO keynotes and interviews from the past is a great start.

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That's a wonderful comment, very thoughtful my friend. I think I agree with you on all levels, if we are talking of managing one's own money. It is quite different though when managing other people's money, I asked this to a PM and he told me it changes everything. When managing other's money, you must make sure to know everything so that you minimize the chances of a mistake occurring.

Phenomenal take, gave me a lot to think about. Thank you for sharing!

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I feel very identified with this one hahaha. I still have my first deep dive (which I deleted) saved in my unpublished posts. Straight up horrendous article, but I like to keep it there so that I can look back at it and see how much I've progressed since then.

Even to this day when I publish a deep dive, I acknowledge than in 1-2 years I might look back at it and feel somewhat unsatisfied with it, but I don't think that's necessarily bad, as it is a sign of progress.

Looking forward to reading your future research writeups!

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Hahahah I feel totally aligned with that. I suppose we all start that way, nobody is born knowing. Thank you very much for sharing your experience my friend, I'm glad you have made progress. I noticed your research process is phenomenal, exhaustive!

Hahahahha I feel the same way, but it's as you say. And these steps are necessary for improving, they are the layers upon which future research will compound.

Thank you very much for the words and keep up the great work!

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