TAILIEUCHUNG - Do Now A New Value Investing Playbook for a Global Age_9

Tham khảo tài liệu 'do now a new value investing playbook for a global age_9', khoa học xã hội, kinh tế chính trị phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 210 What Would Ben Graham Do Now pages of analysis on a given idea. And then I throw it all away pull out a single piece of paper and rewrite it in a few sentences. This desire for simplicity in the value crowd is both a strength and a weakness. When it comes to investment strategy and execution it is a strength. The more complicated the structure of a deal or investment the more things that can go wrong. The more moving parts in the machine the more things that can break. Itè also why you aggressively front-load the investment with a margin of safety so you are less exposed to difficulties and risks going forward. Simple deals also have the mathematical advantage that can then be put together in complex situations or combinations without propagating uncertainties. Simple companies with no uncertainties can be looked at in complex situations and combinations without increasing the uncertainties the reverse is not true. This keep it simple approach is clearly important when moving to more complicated and changeable environments. Execution takes longer. Operational changes take longer. Contracts are harder to sign. Everything that can go wrong eventually does. The more complicated the environment the more important it is to keep it simple. However this desire for simplicity in the value crowd also leads to a tendency to oversimplify reality. People want to start talking in simple anecdotes about investing or markets or industries. It is equally important to simplify in strategy and execution and resist the urge to simplify in analysis. In the last step the napkin stage I always make sure that the investment answers the three questions in a powerful way. The company fundamentals are simple and attractive the margin of safety is impressive and the deal advantages are overwhelming. It has to jump off the page. This chapter is a mix of big ambition value strategy and tactics. Value tanks and direct spectacular investments are very effective tactical approaches foWestern

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