- The successful investor is not very different from an investigative journalist or a crime detective
- Most useful data are public.
- The only difference between the successful investor and a mediocre one is the amount of work he is willing to dedicate towards validating all the key assumptions.
- Investment relationships team of all public companies are very willing and helpful with providing information.
- More qualitative data can be obtained by calling up customers or ex-employees of competitors
- Once you are able to reconstruct a company's business model, you will be able to predict generally whether a company will make or miss earnings
- Legacy technology companies tend to have a longer half life than expected. The key is to determine how much longer the half life is and if there are legal protections that will extend it.
- Beyond the core functionality, it is important to go into the realms of human psychology (adrenaline and dopamine) to figure out the defensible strategy
- Smaller funds are structured to incentivize playing to win (1%-2% carry) while bigger funds are structured to incentivize playing not to lose (expecting only returns matching LIBOR rate of 2.5%) . The difference in mind set results in very different strategies.
Related References
- Knee jerk oversell on news of new entrant into market
[MongoDB versus Amazon](http://garyteh.com/2019/02/mongodb-versus-amazon/)
- [Match versus Facebook](http://garyteh.com/2018/05/match-versus-facebook-20180501/)