My Investing Process
This essay is for investors who want clarity, structure, and real results—free from noise and hype.
My process is straightforward but disciplined. It’s built to help me filter through the noise, spot opportunities early, and avoid common investor pitfalls.
My approach to investing is the result of a decade spent combing through reading investment books, Substack essays, X threads, and LinkedIn debates coupled with my own personal experience consulting for FTSE100 and S&P500 companies. I search for angles and ideas where others might not bother to look.
Over time, I have refined my investing framework through experience, reading, and market testing. This framework constantly evolves, and I encourage you to revisit it as my thinking develops.
Last updated: 30 October 2025
Finding Ideas: The Starting Point
Ideas are not pre-existing; they are dispersed in conversations, less-known spaces and markets that are often overlooked.
I compile a list of potential ideas by gathering names from podcasts, articles, social media and my own research. I seek sectors and industries with sustainable growth prospects that exceed the GDP by at least 2%. If a company meets these criteria and is not already on my radar, I add it to a list for further exploration. This stage is not about conviction but about retaining potential avenues for investigation.
Filtering Rules: Separating Wheat From Chaff
I try to not tie myself to any single sector, trend, or theme. Opportunities don’t just hide in obvious places. They often turn up across any industry, size, or geography. If an idea catches my attention, the first thing I do is step back and get a broad sense of the sector. I never aim to be a sector expert, but I do want a solid understanding of the big-picture forces at play: who wins, who loses, and what trends actually matter.
If a sector feels too complicated or the risks too steep for my taste, I simply pass no matter how tempting the rewards. For example, after months of reading, charting, and pondering, I wrote an extensive essay on Recursion Pharmaceuticals, a cutting-edge biotech. Despite investing enormous time (and losing half my capital), I emerged with humility and a clear lesson: biotech is not for me. The deep technicalities and unpredictable outcomes don’t fit my style or risk appetite.
I also avoid sectors like mining and airlines. Mining is capital intensive, cyclical, and at the mercy of commodity prices and political risk, none of which I can predict consistently. Airlines have equally unforgiving economics: huge fixed costs, thin margins, and a knack for losing money even when planes are full.
Instead, I look for businesses and trends I can actually understand. Businesses where I can see how value is created, protected, and scaled. If a company passes these basic tests, then I’ll invest time to dig deep: reviewing financials, reading filings, and sense-checking my assumptions with public data and commentary. If not, I move on. There are always more fish in the sea, and I’m not keen on risking capital for a story I can’t grasp.
Financial Screens: Digging Into The Numbers
Once a company is on the list, I check the financials early:
Revenue growth must be consistent, reflecting a business gaining traction rather than stagnating or shrinking.
Free cash flow (FCF) conversion should be strong. Growth without cash is hard to trust.
Valuation must be reasonable relative to projected revenue and FCF growth. Cheap stocks aren’t always bargains; the price must promise future value.
I dig deeper into financial metrics with a detailed look at:
Revenue Growth: Is the company expanding sales steadily over time, driven by real demand?
Operating Efficiency: Are costs controlled and margins improving, signalling sound management?
Free Cash Flow Conversion: Is the company translating profits into actual cash, ensuring flexibility and sustainability?
Debt Position: I only invest in companies that are debt-free or where cash on hand covers total debt, ensuring minimal risk from financial distress.
This foundation helps me avoid value traps and identify companies with real operational strength.
Qualitative Deep Dive: Understanding The Business
Numbers tell part of the story; the rest lies in how the company works and its strategic position.
I classify businesses into one of six archetypes, similar in spirit to familiar investing categories but with alternative names that fit my framework:
Reliable Performers (steady growers with durable earnings)
Transformers (companies turning around from stress or mismanagement)
Innovators (market leaders creating new segments or disrupting old ones)
Steady Cash Generators (businesses producing reliable free cash flow)
Recovery Plays (temporarily depressed companies with potential catalysts)
Niche Champions (dominant players in narrow, hard-to-enter markets)
Understanding which category a company fits helps me set expectations on growth, risk, and durability.
I evaluate management transparency, alignment of incentives with shareholders, and look for real catalysts—be they operational improvements, regulatory wins, or demographic tailwinds—that could unlock value.
Valuation Simplified
I avoid complex models in favour of clear, reasoned estimates based on:
Current and forecasted revenue by segment.
Operating cash flow margins.
Capital expenditure plans.
Free cash flow multiples.
Share count trends.
I adjust multiples from industry baselines according to quality, leverage, growth, and risks. If a company fails to meet a target of 30%+ expected annual return over my investment horizon, it won’t enter my portfolio.
Deciding and Positioning
When I find a potential investment that passes all filters, I assess its fit within my portfolio. I allocate capital strategically, favouring high conviction ideas with limited downside. I hold around a dozen positions, focusing on quality over quantity.
After The Purchase
Investing doesn’t stop at buying. I keep close to each company’s story through earnings, news, and catalyst tracking. Conviction grows when actual business evolution confirms my thesis; if facts change, I reassess and am ready to act.
Patience and clarity protect me from emotional decisions and noisy markets.
This disciplined, evolving framework is key to how I research, select, and manage investments. It keeps me grounded and focused on building long-term value.