For most investors identifying new opportunities is a perpetual challenge. So how do professional fund managers set about narrowing down the universe of stocks into market beating investments? Steve Johnson, Chief Investment Officer at Forager Funds, says it boils down to understanding your strengths and focusing on your competitive advantages. “Step 1 is to work out what you are good at, what you have the stomach for and what type of business you have an edge in looking at.” Johnson says the key is understanding out what kind of investor you are and where you have been successful in the past. “To think that you are going to outperform the market you really need to understand what your edge is rather than thinking there is some golden rule that is going to make you money forever.” Watch the full video to hear how Paul Moore generates his best ideas.
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