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Understanding the Business for Equity Evaluation
In order to identify mispriced equities, one must thoroughly comprehend the business to support their evaluation with conviction. Reading the K, building a model, and consulting experts or management are vital steps to avoid failure in presenting an equity as mispriced.
Diamond Hill is a philosophically pure intrinsic value investing firm
Living in Columbus, The Austin of Ohio
What makes a great equity analyst vs an average analyst
How to determine investing team size (using math)
Analyst productivity and how that leads to a better opportunity set and ultimately better client outcomes
Generalist vs specialist analyst team structure
How Diamond Hill is slowly, at the margin, transitioning from a strict sector specialist team structure to a more hybrid model
What is expected of an analyst when it comes to pitching a new idea and maintaining coverage
New idea production vs maintenance coverage
How the best analysts get the most stocks into the port, which leads to the largest coverage list, which leads to the least time to find new ideas
What types of deliverables analysts should provide and why a shorter writeup is superior to a longer writeup
Table stakes skills of accounting, numerical literacy, and mathematical common sense
Interviewing candidates, identifying talent, and bring hyper aware of the barriers to exit when hiring people
The hurdle he uses for hiring talent
The two types of people that produce great work, but why one type may not be the right cultural fit
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Public.com just launched options trading, and they’re doing something no other brokerage has done before: sharing 50% of their options revenue directly with you. That means instead of paying to place options trades, you get something back on every single trade.
-Earn $0.18 rebate per contract traded
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By sharing 50% of their options revenue, Public has created a more transparent options trading experience. You’ll know exactly how much they make from each trade because they literally give you half of it. Activate options trading at https://public.com/jro by March 31 to lock in your lifetime rebate. Paid for by Public Investing. Must activate Options Account by March 31 for revenue share. Options not suitable for all investors and carry significant risk. Full rebate terms here (https://public.com/disclosures/rebate-terms). US members only.
Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
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FinChat.io is The Complete Stock Research Platform for fundamental investors.
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Use our LINK and get 25% off any premium plan: http://finchat.io/jro
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Listen to the best highlights from the podcasts you love and dive into the full episode