![]() ![]() I’m probably going out on a limb here but practicing the scuttlebutt method well is like method acting. When the market is selling off indiscriminately, that extra layer of research and due diligence provides conviction in a position that can’t be had from secondary research alone. Primary research is important because doing the legwork and kicking the tires yourself provides a higher level of confidence and conviction. Why do they continue to use the company’s products/services? What would motivate them to switch to a competitor? How difficult would it be for them to switch to the competition.Ģ) It is a form of primary research as compared to secondary research like reading financial statements and other company materials. Current and former customers can also be an extremely valuable source for assessing a company’s moat and potential switching costs. Former employees and current employees can provide valuable insights about employee morale and sentiment. In my opinion, scuttlebutt research is important for two key reasons:ġ) It provides deeper insights into a company that can’t often be had through just reading. This is, of course, above and beyond all the financial statement reading and standard due diligence that a prospective investor is expected to do. It refers to a method of conducting due diligence about a company and its investment merits by talking to all kinds of people related to it like customers, vendors, trade associations, competitors and employees (former and current). It’s not that far off from the more modern office equivalent – “watercooler talk”.Īs it relates to investing, the Scuttlebutt Method was coined by Phil Fisher in his seminal book "Common Stocks and Uncommon Profits" (See Recommended Reading). Since sailors exchanged gossip when they gathered at the scuttled butt for a drink of water, scuttlebutt became slang for gossip or rumors. Water for consumption on sailing ships was typically stored in a scuttled butt - a butt (cask) which had been scuttled by making a hole in it so the water could be withdrawn. ![]() The origin of the term is related to sailing. Scuttlebutt is a term that generally refers to rumors or gossip. ![]() However, I thought it was due time to dig a bit into what scuttlebutt investing involves and why I am so passionate about it. You might have thought that this would have been my first post ever - explaining the Scuttlebutt Method but alas so much to write about and so little time. Scuttlebutt Investor is an homage to the great Phil Fisher – an early GARP (Growth At a Reasonable Price) investor before GARP was even a thing. Scuttlebutt does not share its subscriber list.The first question I usually get when I tell someone the name of my blog is: where did you come up with such a dumb name? And I get it – “Scuttlebutt” isn’t the sexiest name for a website or blog but it is an idea that has resonated with me over the years and to which I am forever indebted. If you have questions about Scuttlebutt, any trouble subscribing, or wish to unsubscribe, please contact Celia Cackowski at privacy is important. To post a message, first subscribe to the list, then address your email message to: It will go to everybody who is subscribed to the list. Only subscribers may send messages to the list. Please restrict attachments to a total size of 500kb or less Petitions, political commentary or advocacy, resumes or job requests, requests for donations or votes, crowdsourcing, cross postings and commercial messages are not accepted. Scuttlebutt carries messages related to marine education that should be of professional interest to many marine educators nationwide. The list does not provide research services for students' assignments. The Bridge staff monitors list activity and often is able to assist in locating expertise to answer questions that teachers post to the list, as needed. Join the ocean education conversation! Scuttlebutt is the national email discussion list for educators and scientists interested in talking informally about ocean education ideas, issues and questions.Īll educators and scientists interested in marine science education are invited to subscribe. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |