Ignore the stock, focus on the business.
Study the business and its Management, everything else will follow.
Invest only in businesses you can understand. Study thoroughly those you have yet to. Grow from there.
There are over 45,000 listed companies around the world – chances are an average investor cannot hope to understand all of them. Nor do they need to.
We built our application based on the belief that the investor does not need to know all the businesses across the dozens of industries – Investors just need to know as many companies as their time and interests permits.
There is no quick and easy way to success.
As Phillip A Fisher observed, investing in common stock is probably the only one area of human activity where a person’s initial investment could grow 4 to 10 times within a decade and require only the occasional review once or twice a year.
Investors hoping to achieve such potential gains with even less effort; hoping to really understand the operations of multinationals, of multi-million dollar enterprises, with only basic summaries; or to have hot tips recommended by machines or brokers… Such approach is probably too optimistic and too unreasonable.
Investing, we believe, is relatively simple – but it is not easy.
Knowledge and mastery cannot be gained in a day.
There might come a time when you could accurately value a business in minutes. That time may not be until after years and decades of detailed studies to gain insights and deep understanding of business operations and its industries.
Detailed understanding cannot come from mere glances at financial summaries and glossing over business operations from managerial letters and news commentaries.
Knowledge, we believe, can only be gain from in-depth understanding of one company, one industry, at a time.
Investing is extremely important. It will take time and great effort to find the right company. Will take great luck to find it at the right price.
Not everyone have the time nor the inclination to study businesses. If this is you and you still want exposure to stocks, we strongly suggest buying into a low-fee index fund and grow your wealth with the general economy.
However, when you decide to pick individual stocks for investment purposes you must become a business analyst. That is, you must know why one business is better than the other, why a particular company is worthwhile and others are not; why you would only pay at certain prices and not at others…
The knowledge and ability needed to make informed investment decision cannot be gain quickly, cannot be achieved effortlessly. They will, as with all things of great potentials, requires tremendous amount of work and effort; requires focused, independent research and purposeful studies.
There is no investment guru, no innate ability to invest, no special gift nor special talent for stock picking.
There is only hard work.
Investing, as in all trades and professions, can be learnt, can be taught, and can be gained through conscientious effort and continual study and application.
There is no magic formula or silver bullet; no artificial intelligence or secret algorithm.
Successful investing is simply the understanding of the business. Risk are reduced by knowing what you are doing, by learning from mistakes.
Such belief lead us to one conclusion – the intelligent investor invest only in what they know; in what, after careful studies, they have come to appreciate.
The intelligent investor must be a student of business and a business analyst.
To be greedy when others are fearful, fearful when others are greedy is a sensible way to invest – but it is also easier said than done.
We do not believe going against the crowd could reasonably be done with freely available financial summaries and quick glances at research prepared by publishing houses or opinion makers.
To go with the crowd or against it is not important. What is important is going the right way. Confidence in your decision can only be gained from indepth understanding of the business at hand.
Thorough understanding need an efficient, structured and standardized approach to business analysis.
DangInvestor has standardized business analysis and stock valuation.
Investing is simply the analysis of business and its management to enable informed and rational estimates of the enterprise’s intrinsic value.
Any person could do it with pen, paper and a calculator; could do it with simple spreadsheets. All that is needed is an understanding of how business ought to be analyse, how financial performance are to be measured, how financial strength and operational efficiency can be interpreted from the three main financial statements…
Such understanding can only be arrived at after reading widely and discarding various approaches deemed irrational; after trial and errors; after serious studies of what is called the “fundamental” approach.
… Then put all these knowledge into a standardised structure of some sort to then apply it methodically in the search for outstanding companies selling at reasonable prices.
DangInvestor, we believe, have standardized the manual requirement of business analysis and valuation for the Value Investor.
Having the right foundation, the right mindset and the right tool is just the beginning.
As it is in all things, to know what to do and how to do it is just the start of the journey. They are mere preparations.
Where the tools and preparations and knowledge takes us depends on the opportunities and our willingness to keep walking.