Ideal Origination Funnel: "Start With the A's"

When asked how he screens for stocks, Buffett said he "starts with the A's." Screening ideas is an art and a science. Reported numbers are messy and full of non-recurring impacts that are both explicitly called out by management and hidden. You don't want to exclude the next 100 bagger, but you also don't want to waste time looking at crappy businesses.

Therefore, be loose on the screener and exclude industries you are not familiar with / don't want to invest in. Exclude nanocap and megacap unless that's your focus. Include only countries you are familiar with. Set a timer for 5 minutes per name and try to accurately eliminate as quickly as possible. For those that make it to the next round, spend 10 minutes on them. Then 30 minutes. Then 1 hour. Then 1 day. You'll improve accuracy and speed with reps.

Tip: The most efficient way to learn about a business is to find an investor day presentation from the company's website. Not every business will have this though :(

Видео Ideal Origination Funnel: "Start With the A's" канала Akshay Ramachandran