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Investment Philosophy: Difference between revisions
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In fact when studying industries, companies, balance sheets we strive to understand the unique situation and are not blindly applying ratios. | In fact when studying industries, companies, balance sheets we strive to understand the unique situation and are not blindly applying ratios. | ||
When doing hypothesis testing of cause-effect relationships we do look both for strong historical correlations <u>and</u> logical explanations for those correlations. | When doing hypothesis testing of cause-effect relationships we do look both for strong historical correlations <u>and</u> logical explanations for those correlations. | ||
We explicitly <u>invite you</u> to challenge all our assumptions if they are not logical or feel inconsistent to you, or you think we are missing an important point. We will then take your considerations into account, revisit the assumptions and correlations if needed or simply do at better job of mapping out the logic of those assumptions better and increase the transparency of the model. | We explicitly <u>invite you</u> to challenge all our assumptions if they are not logical or feel inconsistent to you, or you think we are missing an important point. We will then take your considerations into account, revisit the assumptions and correlations if needed or simply do at better job of mapping out the logic of those assumptions better and increase the transparency of the model. | ||