Thursday, June 20, 2024

Long term fundamental investing

The “long term fundamental investing” approach demands deep diligence, fundamental research, and an independent analysis of the investment opportunities irrespective of the general prevailing opinions or state of the markets.

One of the ways to describe this approach is to discuss what it is not. It is not about investing based on recommendations of analysts, or investing based on a one-hour meeting with the management team in a sell-side conference. It also does not entail seeking protection from extreme diversification. Instead, this approach envisages employing a lot of time and effort to understand the industry, management, company, competition, and demands that the investor puts its eggs in very few baskets, and then watches the baskets carefully.