The first step is to get our eyes on investments with high potential.
- Maintain and review our “bench list” of companies we have owned and met with in the past.
- Attend conferences and meet with management teams.
- Filter companies for winning characteristics such as valuations, strong corporate culture, aligned management incentives, and low debt ratios.
- Discuss ideas with buy-side and sell-side analysts who know our investment criteria and have more industry-specific knowledge / experience.
This analysis helps us start with a group of stocks with a high estimated probability of outperformance.