Gavin Baker+ Your Authors @GavinSBaker Husband, Becky Painter. CIO, Atreides Management. Former PM, Fidelity OTC fund. No investment advice, views all my own. Feb. 16, 2020 1 min read + Your Authors

1) Hypothesis: there are minimal returns to the study of investing after roughly a year vs. increasing returns to having a deep understanding of specific companies and industries when paired with a threshold level of investing knowledge.

2) This is why Buffett can give away his investment process yet so many struggle to replicate his success; alpha comes from also having a deep understanding of specific industries and companies. All the mental models in the world are worthless for alpha generation without this.

3) Might be more fun to study investing indefinitely, but it is more profitable to eventually move on to an intensive study of specific companies and industries. Today anyone can become an expert in anything using publicly available information @bgurley 

4) This cuts both ways. It is hard to generate alpha without a threshold level of investment knowledge even if one is an expert in a given industry or company. Just easier to hit the threshold for investment knowledge than it is to become a true expert in an industry.

Fun discussion but heading out to ski here at Alta. 8-12” of ❄️ expected today with more tonight.

Very grateful to @lainypainter for consenting to this weekend over 🏖 as most Baker/Painter vacations come down to a negotiation between us.

You can follow @GavinSBaker.


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