Adding Little Grapevine to your research war chest gives you an option to start meeting management teams, while helping you sharpen your interview skills. It will also help you grade CEOs and CFOs over time.
One of the greatest benefits you will get from viewing company presentations is gaining a competitive edge by finding information hidden in key slides. These slides can provide important clues about future growth prospects that will take time for the market to find. Because the Little Grapevine team is made up of investors, we do our best to make sure companies that join the platform address the most important aspects of their businesses, including risks. Another added benefit you get from our team is that we know what slides are important and highlight them for you.
The speed at which the financial media and social networks deliver information taunts our emotion on a daily basis. Furthermore, the day to day volatility in the stock market seems to be greater than ever, which makes matters worse. Headlines bombard us everyday with messages of economic gloom and doom, and an impeding market correction. The negative emotion that these fear tactics illicit can lead to bad investment behavior. One way to combat these negative overtones is to build confidence in your research process and investment decisions.
To find great success as an investor and to make the investing journey worth the risk, you need to perform intense research, regardless of the strategy you want to use. To quote Peter Lynch:
“The person that turns over the most rocks wins the game. And that’s always been my philosophy.”
One of these rocks is interviewing CEOs and CFOs of companies you are researching. For example, the more familiar you are with the companies you’re buying and the more in-tune you are with management, the better prepared you’ll be to hang on to companies when things go bad or to maintain your sell discipline when greed comes calling. You’ll probably never have 100% confidence when you invest in a stock, but if you put in the work to understand the company, understand what happens when the economy changes and how management has dealt with challenges in the past, you will build the confidence to hang in there when markets turn negative.
While watching on-line CEO presentations and video interviews can not replace the one on one interaction you get when you interview a CEO on the phone or meet him or her at an investor conference, they are a great first step to start connecting with management, especially if you are not quite ready to call management or don’t have the time to travel.
Always remember, it’s all about the jockey, not the horse.