Review 10-K filings to understand revenue streams and evaluate management's track record.
Value Investing: Tools and Techniques for Intelligent Investment Review 10-K filings to understand revenue streams and
Montier opens by challenging the modern fixation on "Alpha" and short-term relative performance. He argues that the investment industry is structurally flawed, incentivizing activity over results. [ Step 1: Quantitative Screen ] -> Filters
[ Step 1: Quantitative Screen ] -> Filters for low P/E, high ROIC, and low Debt. | [ Step 2: Financial Deep-Dive ] -> Analyzes 10-K filings, cash flows, and balance sheets. | [ Step 3: Qualitative Assessment ] -> Identifies economic moats and evaluates management integrity. | [ Step 4: Intrinsic Value Model ] -> Runs DCF or asset-based valuation models. | [ Step 5: Apply Margin of Safety ] -> Requires a 30% to 50% discount to calculated value. | [ Step 6: Portfolio Execution ] -> Initiates a position and monitors periodically. 6. Common Traps and Behavioral Biases | [ Step 4: Intrinsic Value Model ]