Earlier this year I watched Lang Lang play Grieg’s Piano Concerto in A Minor—one of my all-time favorite pieces of music. The concerto is a monster—full of big octaves, virtuosity, excitement and power. It has around 30,000 notes, but the music is tied together with a simple 10 note melody that is repeated throughout the piece. I am currently working on a few different investment ideas that have numerous moving parts, but as I conduct my research, I continue coming back to just a few key variables that will largely determine the outcome of the business operations and the investment situation. I think that when analyzing a business or a special situation, this is one of the most important things to remember: there are many complicated aspects to analyzing a business—hundreds of data points, thousands of potential outcomes, pages and pages of SEC filings—all which often create a fuzzy view of the future. Sometimes there is no view of the future at all (or at least one that I can’t see), in which case I simply move on to the next idea. But sometimes through the complication and the inevitable unknowns that come with investing, one or two key variables emerge as the only things that really matter in the end. I came across this quote last week in one of the posts over at Value Investing World, so thanks to
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Focus on the Key Variables of an Investment
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Earlier this year I watched Lang Lang play Grieg’s Piano Concerto in A Minor—one of my all-time favorite pieces of music. The concerto is a monster—full of big octaves, virtuosity, excitement and power. It has around 30,000 notes, but the music is tied together with a simple 10 note melody that is repeated throughout the piece. I am currently working on a few different investment ideas that have numerous moving parts, but as I conduct my research, I continue coming back to just a few key variables that will largely determine the outcome of the business operations and the investment situation. I think that when analyzing a business or a special situation, this is one of the most important things to remember: there are many complicated aspects to analyzing a business—hundreds of data points, thousands of potential outcomes, pages and pages of SEC filings—all which often create a fuzzy view of the future. Sometimes there is no view of the future at all (or at least one that I can’t see), in which case I simply move on to the next idea. But sometimes through the complication and the inevitable unknowns that come with investing, one or two key variables emerge as the only things that really matter in the end. I came across this quote last week in one of the posts over at Value Investing World, so thanks to