How Much Time Do You Spend on Research?
How much do you research your picks and holdings? I'm just really curious. I'll go first. I'll break it down into steps.
1. In the first 3-5 minutes, I have a general picture how the company's done in the last 5 quarters and last several years. It's pretty clear which ones are worthy of further research and which ones aren't. I'm often willing to pick something in CAPS at this point. I'm just looking to see if something's potentially undervalued here.
2. If I'm seriously considering a company, I'll do a 2-3 hour look. In that time, I can read the latest annual report, look at a more recent quarterly report, and maybe listen to the latest earnings call. This is about how much time I spend for my long pitches, such as GNK and TWGP (more to come, I promise). In these 2-3 hours, I want to get an idea how a company makes money, how the company expects to make more money in the future, and any potential risks or catalysts. If I don't understand a company's industry, I have to take extra time to learn it.
3. Anything after that varies greatly. I research companies I own and companies in which I'm interested much further, but I don't do it all at once. I check my watch list daily for news tidbits and anything else that is worth knowing about the companies I follow. If I'm feeling ambitious, I'll read more past annual reports, research competitors, listen to past earnings call, and the like.
How about you?