When we look behind the scenes at any investment fund, we tend to find the full story. In truth, producing results is rarely the work of one or two individuals. The reality is that it would be difficult for such a small team to compile the amount of information that’s necessary to really judge the potential value offered by differing investments.
This means that it needs a group of real analysts to sit down and to look at specific countries, markets and companies. To begin with, it’s fair to say that this must involve a lot of graphs. For those of us who may not have been great at school, that probably doesn’t sound like a lot of fun!
That’s right, it means a lot of addition, subtraction, multiplication and division. Although there will certainly be computer programs available at Nevsky Capital to make such data transformations easier, the team led by Martin Taylor and Nick Barnes must still find themselves relying heavily on mental arithmetic in the first instance. That’s the way that many of us look to narrow down options.
It’s only once those initial, near-immediate, calculations have been carried out that we can seek to move on. That may well be the same for you, depending upon your own chosen role. Admittedly, you may not be focused on managing an investment fund, but it’s easy to see how the same rules might generally apply.
Ultimately, the team will be looking for signs that particular investments offer value. By the same token, they will be attempting to identify those that should be avoided. Using computer programs and algorithms will only take things so far. Beyond a certain point, it clearly becomes necessary to use the experience that must come from years of investing.
What can the rest of us learn by watching such teams in action? Although we may be investing on a smaller scale, it seems clear that we can also look to make informed decisions. That must be at the heart of all that we do.