Methodology

How this works is simple. Here is the outline. Feel free to take it, use it, adapt it and deploy it to build valuable expertise. This path is not linear. You will need to start and stop. Feel free to take detours to dig into and learn whatever topics you need to and then come back to your learning path.

One Company

Pick a company that interests you. Study this company deeply. Read every 10k or annual report from its inception or from the last two decades. Understand its products, product development, key people, key shareholders, strategies, financial health, operating characteristics, its market, organizational structure, unit economics, etc. Read everything you can find about this company.

Learn whatever you need to understand this company better, including accounting, finance, strategy, statistics, marketing, valuation, etc. Network with people in this company online and offline. Find others who study this company, ask questions, and build connections.

Study Competitors in the US

Now that you know a lot about your primary company, expand your study to its competitors in the US. Do this one by one. You will be faster now, given your understanding and knowledge of your primary company. At all points, compare each competitor with your primary company.

Study International Competitors

Now, expand your study to international competitors. Again, study each competitor one by one. Cluster them geographically. You will be faster now, given your understanding and knowledge of the industry. Compare international competitors with your primary company and the US players.

What Next?

You will know more about this industry than 99% of investors and many in the industry. Now, you can work on your temperament. You would have understood industry cycles well. You would know what the current opportunities are in this industry. You would know the best companies in each geography in this sector. You will know the valuation levels. No one needs to tell you if there is a margin of safety. You might need to be patient. Cycles always go up and down.

Expand Your Circle of Competence

Study your industry’s customers or suppliers. Keep learning. Never get old. Never stop learning – even if you are 99 years old. It’s the Charlie Munger way!