When considering an investment in the stock market it is important to learn as much about that company and the industry as possible. You’ll want to read company reports, announcements, and ask as many questions as possible that might uncover any red flags. Our Ultimate Value Investing Checklist may help with this.Details
One of the key aspects we at Farnam look for in an investment opportunity is asymmetry. What we mean by this is that the potential upside, or return on investment, far outweighs the potential downside, or loss from investment. These instances are said to have an asymmetrical return profile. We believe Yahoo! represents such an opportunity.Details
When you are making a decision about buying a business there is no doubt you would want to know everything there is to know about the business to be able to make an informed decision. The same should be true of investing because, after all, investing is just buying a part of a real business.
But where do you begin? Sometimes the amount of information can be overwhelming if not collected and analysed intelligently.
At Farnam, part of our core investment decision making process is a checklist so we can ask the same questions of every company we analyse. No business will ever pass every checklist item, but after completing it, we have a very good idea of whether or not it is worthy of our investment.Details