About 2.5 years ago, I wrote a post about how I managed to manage my parents’ investment/retirement portfolio.
As I continue to learn through work and from reading other companies that I follow, I recognize a trend that is pervasive even in the most high-tech of companies.
In the past few years, I’ve come around to this mental model that the economic value of tech businesses are not easily calculated when looking just at public financial reports/filings (10k, 10q, annual reports etc.) at face value.
One of the most important heuristics (and possibly mental model) that I’ve been learning to apply when looking for great investments (in product and business) is how the management telegraphs and frames their position and/or product.