Lessons from an analyst

Equities investing is a journey of continuous education. This being my first thought piece in the series I thought it would be a good time to share a few things I’ve learned about investing in my first year as an analyst with StocksInValue / Clime Group. My formal education was largely based on Modern Finance Theory, where risk equals volatility, markets are always efficient and optimal investment portfolios are mathematically derived. But theories are only as good as their assumptions and ability to describe reality. Investors who focus on earnings quality, downside protection and optionality can do very well in spite of the theory. In the linked article are some points I didn’t fully appreciate at first but became more apparent in practice. I hope they’re useful things to consider for you too. (VIEW LINK)