Enterprising Investor – Keep It Simple: 11 Rules for Equity Valuations

Enterprising Investor – Keep It Simple: 11 Rules for Equity Valuations

The job of investing can feel larger than life at times. Every day, new companies, rules, and securities emerge adding layers of complexity to an already saturated system. Look no further than cryptocurrencies as an example of how financial innovation can leave analysts scratching their heads. But just because the investment-world is uncertain does not mean your investment strategy has to be. This article (link) highlights 11 ways equity research analysts can “keep it simple” when it comes to assessing a company’s future financial picture. As the author points out, “complexity is not our friend,” so it’s important to focus on key information. At WDS, we too stick to the fundamentals and concentrate on a limited number of holdings that our portfolio managers like best.

In the attention to details series, we lift the lid on what WDS does behind the scenes to invest well by sharing what we are reading. These are pieces that often articulate different aspects of our philosophy and ultimately our process. Check back regularly for a new article that is worth the read.