Sizing Up Bad Market Definitions
Reflecting on 20 years of investing, one investment professional recently remarked to us, “When I think about what we’ve gotten wrong in the past, the worst times have been when we believed we had a bigger market size than we really did. There’s just nothing you can do...the company just runs out of room for growth.”
Assessing the Threat of Low Cost Imports
Anyone who has worked deals in the industrial engineered products and components markets in the last decade likely encountered a common diligence issue…
Leading the Witness
Today’s note is a simple – but important – reminder. It’s the old-fashioned echo-chamber: driven by the desire to prove a thesis, over-eager diligence professionals draw confirmatory conclusions by leading the witness.
Problems to Avoid when Forecasting Product, Service, and Technology Adoption as Part of Diligence
An investment thesis often depends on adoption in one form or another (e.g., of a new product, business model, technology, etc.) so we thought it helpful to lay out “best and worst” practices for assessing adoption potential.