How do you find investment ideas? When meeting with other investors, and potential clients, that is the most common question asked. Every institutional investor has a very fancy slide with which to explain their process, because that is what the researchers demand of them. My experience has been that reality is usually far from the simplicity represented on that slide. Good stock pickers have a multi-faceted and wide ranging, often somewhat random way of sniffing out prospective areas in which to spend their time. And that's all idea generation is. You need to strike the right balance between being exposed to hundreds or thousands of potential ideas, and in-depth analysis of the most highly prospective targets that result from that higher level search. A good idea generation process is one that regularly lands you in particularly prospective ponds. In this post Forager's Vienna-based analyst Gareth Brown explains how he goes about it: (VIEW LINK)
Starting Forager Funds in 2009, Steve has grown the business to over $370m of funds under management. Offering an Australia and Global equity Fund, Steve focuses on long-term value investing of unloved and undervalued companies.