- It reinforces our conviction of the investment thesis. This is why we have to do our due diligence and not leave it to analyst report. Leaving our research to analyst’s target price will only result in weak emotional discipline when the stock price plunges.
- It minimises the risk of “anchoring bias-ness”. It’s human psychology to anchor on a single reason unknowingly. For instance, you find a stock cheap ...
The reason why I started this blog is to allow an explicit archiving of my thinking process and certain investment lessons/mistakes which will be essential to remember. And this goes the same for our investment research process as well. Having a proper and structured research process over a particular stock ensures that every possible perspective point has been adequately covered. It is not that it looks professional but for someone who is a beginner like me, it actually brings about several advantages:
