We love reading commentaries from a wide variety of investment firms. We read them to find potential new ideas or just to learn something new about analysis or investing. We thought this passage from the Frank Fund’s Q2 2013 commentary was spot on. The entire commentary is worth a few minutes of your time.
“With every investment case there are mountains of potential information available. To paraphrase Kathryn Staley from The Art of Short Selling, where creativity and experience come into play are boiling down the mass of numbers to “the most important thing.” Every buy or sell decision, long or short, should come down to a “most important” set of data, and the hardest thing about investing is isolating this elusive, always-different, information from the noise. As with Mr. Sabella’s problem of the day, it has nothing to do with the textbook, so you must draw on experience and creativity.”