In this installment of The Nightcrawler, Eric Markowitz discusses the parallels between investigative reporting and investing, emphasizing that valuable insights often arise from in-depth research rather than CEO statements. He asserts that the skills acquired in journalism, such as aiming for thoroughness and verifying facts, are crucial for successful investing. Markowitz highlights a common pitfall investors encounter—focusing on stock prices rather than understanding the underlying businesses. He echoes sentiments from colleague Arne Alsin, who values long-term ownership and comprehension of business fundamentals over short-term trading strategies.
If we're managing a concentrated portfolio, the approach isn't all that different from great reporting. Looking back on my time as a journalist, the best reporters never took shortcuts in their research.
The most common mistake investors make is focusing on stock prices - not on the underlying business. Real wealth comes from understanding and owning great businesses - not trading stocks.
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