Investment Research - Getting Organized

The summer sailing season has ended.  We have just completed a trip to England - something that we do every spring and fall where we make it a point to stay in places managed by The Landmark Trust or The National Trust.

Those memories will carry over for a long time.

Time to Focus on Investment Research

Over the past six months, my investment activity has been confined largely to reducing exposure to equities and preparing for a potential significant market correction.  It has been addressed in previous posts.

In this regard, I have been influenced by a remarkable book: Mastering the Market Cycle : getting the odds on your side by Howard Marks, one of my favourite authors on things financial.

The other reason for trimming positions is that I lost touch with the market as my efforts were focused elsewhere.  Further, I felt that there was no harm in taking profits and trimming some losers in the face of an uncertain market climate.

I have allocated several months for intensive research: to identify companies that have the potential to rebound quickly once the market corrects; to identify investments which should be relatively resilient in the event of a major market correction.

In earlier posts, I have identified the process I use to identify promising investments.

Information and Data Management

It is critical to document the course of one's research: to identify and document sources in a way that they are ready to hand when the need arises, to organize the material in a way which is complementary to your thinking processes, and to do all of this in an organized system.

Information management for me is not always to be equated with "neatness".  Nor is it to be conflated with a "one system fits all" model which some software developers promise will solve all of your problems e.g. Evernote etc.

To my mind, Al Gore has a fine system.  Actually, it is a "system of systems".

Note the following:

• a bookcase for references which are used occasionally: not too many - my bet is that it is a collection of "the best of the best" for his purposes
• a flip chart in order to "draw" ideas - something that I do when I build systems models for industry segments to direct my research
• multiple computer screens to allow for quick comparisons and to consolidate information quickly 
• a dedicated computer for non-investment purposes such as e-mail, photo storage and editing etc. 
• stacks of paper documents organized into piles: the "stratigraphic" approach to document mining is surprisingly effective
• large waste basket
• printer
• windows to provide eye relief and a view for day dreaming
• good lighting 
• a comfortable seat (I think) and a set-up which facilitates quick access to a variety of working surfaces 
• note the relative absence of binders ... horrible inventions ... ditto for filing drawers which are good only for long-term record storage e.g. tax returns

Also note that his room appears to be dedicated to the work at hand.  This important psychologically.  Everything is organized for a purpose - the business of getting work done with a minimum of distractions - the proverbial work room.  So ... it's not only how you work ... it's also where you work.

Rejigging My System

I decided to develop a comprehensive system for managing my research findings.  Before focusing on one component (e.g. the ideal browser), I felt that it was important to start by integrating the individual components of my activity into a coherent system that was complementary to my way of thinking:

• I do a lot of parallel thinking and often go off in tangents in my search for new ideas
• I like to focus intently on topics of interest, sometimes to a ridiculous degree: the point where you cease to hear any background music and your attention is focused to the point of no return (my wife opines that I'm often in my own world during these periods)
• I read voraciously, an activity that involves hold-in-hand printed material and a variety of electronic media
• I like to have a system which accommodates a variety of thinking processes:  sometimes I draw out ideas, sometimes I do extensive cross-referencing from a wide range of sources; sometimes I consolidate, and so on.  
• I am fortunate to have the space for a dedicated office for things financial.  

The "Gore System" is the one that works for me. Seeing that picture was the final catalyst.

The Browser

After trying a many browsers over the years, I have decided on Vivaldi.  It fits my thinking processes.  It's strength is that it can be customized to a great degree.  

I use this browser ONLY for financial research.  By dedicating it to this purpose I have conditioned myself to use it for the financial work.  In  doing so, I have lessened the temptation to get distracted by the siren calls of things such as YouTube travel and DIY boating items.  

There are many reviews of this product.  I will not elaborate on them further as they are readily available through internet searches.  This aside, the only way to see if it is suitable is to try it out in practice.  

Depending on my purpose, I use other browsers: FireFox, Chrome.