454- Weather Matrix
The 21st century has brought the world a number of revolutionary developments that have turned the world on its head, with one of the most important cultural shifts being the rise of the attention economy. With so many entities all vying for a piece of your time, how can you know when you’re spending too much of that limited resource on your investing research?
With decades of investing experience and a bit of basic mathematics, Phil explains a tool to classify companies into four groups based on their price/value ratio and the investor’s understanding of the business. If you find yourself getting bogged down or stuck in the weeds on your investing journey, this method could be the thing you need to streamline your research.
For more help calculating the ever-important metric of price vs value, get your free copy of Understanding Market Capitalizatin: https://bit.ly/44p1xE9
Topics Discussed:
How much effort is too much effort?
Accumulation of knowledge
Price/value discrepancies
Being prepared to “weather the storm”
How to capitalize on market downturns
Importance of repetition
Resources Discussed:
The Weather matrix
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