Andrew Page - Strawman
"A lot of people say do your own research. The problem is knowing where to start with said research. What kind of information should I be looking for and where do I find it?"
This is a question I recently received from listener Greg W on my listener survey page.
His question could not have come at a better time. My guest in this episode is hard-core fundamental analyst Andrew Page. He loves nothing more than rummaging through the accounts, forecasts, company reports and ownership registers of listed companies.
The businesses I own, there are hundreds and hundreds of staff working full time for my benefit - let them do their thing!
Andrew shares his research along with a family of like-minded investors at the Strawman Investing Platform.
Strawman is a social network and collaborative platform for private investors.
It crowdsources research and recommendations on ASX listed companies, drawing on a broad network of experienced contributors.
Content is organised and ranked according to member endorsement and performance, delivering dynamic, peer-reviewed and actionable share market recommendations.
He whose bread I eat, his song I sing
This is a nice quote from the podcast to describe the researching of ownership. It's about looking for who owns the majority of shares in a company. Are the founders still in control? Have management been buying or selling shares? Who else is on the register? And are they any good?
It's another way of asking "who benefits", from a Latin phrase that has worked for over 2,000 years.
This photo is a cleverly posed fake. Andrew is not a fan of technical analysis. He's from a scientific background and has never seen any convincing evidence of it working consistently over a variety of time frames and market conditions.
The book is nevertheless a great read as it describes the psychology and sentiments of market movements. It also tells you the best kind of graph paper to use if you are a bearded hipster into creating your own steam punk charts.
A checklist for investors
GregW, this article addresses the very basics of where to start your research.
Andrew published this article on LinkedIn and we discuss each question extensively in the podcast. In the article Andrew asks:
What is your process for buying shares?
"There’s certainly a plethora of things a diligent investor can investigate before they pull the trigger, but not all will offer much value and some can be a downright waste of time. You need to be smart about where you focus your efforts."
- Do you understand the business?
- Do you trust management?
- What are the risks?
- Is the balance sheet in good shape?
- What price is fair?
And finally below is the album I was listening to while putting the final touches to this episode.
Phil's top share investing tip: curate your playlists as carefully as you create your portfolio and make sure they both include some rare groove.
Check out Andrew's platform Strawman. There's no better place to start learning how to conduct your own research and inform your investment decisions.
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Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation.