Weekly thoughts #4
Copying ideas and competition.
Disclaimer:
Eloy Fernández Deep Research publishes equity reports, and analysis posts periodically. All reports are subject to the following disclaimer.
Eloy Fernández Deep Research gathers information from public (free and paid) databases, company reports and media releases. This information is used as available basis.
Eloy Fernández Deep Research reports should only be taken as guidance. They don’t suppose an investment recommendation. Any investment decision should not be based on the Eloy Fernández Deep Research Report. Eloy Fernández Deep Research is not responsible for any investment decision or later consequences.
The opinion expressed in the reports and posts is my current opinion. This opinion is based on the prevailing market trends and is subject to change.
This post is not a BUY or SELL recommendation.
“Some pygmies standing on the shoulders of giants will see further than the giants themselves”. Diego de Estella, Spanish Franciscan mystic.
Replicating ideas, or investing in companies that are not the latest hidden gem, should not represent a problem for an intelligent investor. Although EF Deep Research tries to find value in hidden and unknown stocks, I have to say that this is not an anchor to style, but rather a means to search for a result. I like the vertical football, not the possession style.
Do not compete against anyone. In finance, the only thing that should matter is meeting your personal goals.
Investing is not a quiz of originality. In any area of life, human beings rely on the work of those who preceded them. Thus, Renaissance art is inspired by Roman art, and Roman art is inspired by Greek art. Same for literature, science and any area of knowledge. The important thing in the investment process is not to copy irrationally, but to do the work beforehand. Obviously, that requires study, knowledge, and work. Investing in a very well-followed or well-known stock, with a high level of conviction and an adequate margin of safety, is as valid or even more valid than having the most original portfolio in the community.
These are my reflections for this week. Although very, very short, it is the only thing I have to say.
“Better to Remain Silent and be thought a Fool Than to Speak and Remove All Doubt”. Abraham Lincoln, 16th President of the United States.
