The purpose of this blog is to track my thoughts and progress as I try and to use the principles of deliberate practice to improve my ability to make investment decisions.
Generally, when looking at opportunities I will be using a value approach similar to Buffet/Munger/Greenblatt and sometimes Graham. The first question then is where to start and where to focus my efforts. How can the investing process be broken down into constituents that can be rehearsed over and over? How can I receive useful feedback from the practice?
Following a value investing approach requires two main components:
- Accurately assessing whether a business is undervalued.
- Establishing the quality of the business.
I believe focusing on improving my ability to improve both of the components above will result in a much greater ability to invest profitably. Undoubtedly there are other aspects to investing that will need to be developed and may lend themselves to deliberate practice as well (e.g. managing cognitive biases) but for now I will begin with two points stated above.