There are thousands of publicly traded companies to invest in. They come in many shapes and sizes, exist in all sectors of the economy, and have their own unique risk-to-reward profile.
In the current economic environment, investors looking to preserve their wealth are forced to go further out on the risk curve to find investments that outpace inflation. Most are turning to public equities.
This is where we come in. We seek to identify the public equities that are well-positioned to outperform through comprehensive research and data analysis.
Please note that our content is for educational purposes only. Despite our research team’s dedication to covering stocks with promising return potential, our content is not intended to be investment advice.
Our Guiding Methodology
Below is our methodology and framework that we use to evaluate public equities:
- Network Effects: We believe companies that grow their market share through powerful network effects have an exponential advantage over those that do not. Companies that leverage modern platform technologies can grow faster and iterate on their products and services quicker. We try to identify these companies whose products and services improve with each additional user that joins their network, especially in industries where AI-enabled technologies are yet to be applied at scale. Our analysts seek out these arbitrage opportunities to pinpoint compelling public equity investments.
- Secular Trends: Our top-down approach to equity research allows us to best identify potential outperformers in the equity market. Detecting substantial secular trends is the initial stage of our research process. From there, we analyze equities within that trend to determine the ones that will create the most value. These secular trends typically occur in winner-take-most markets, so identifying the winner or group of winners is our top priority.
- Second-Order Opportunities: Depending on the granularity of a specific trend, there may be additional downstream technologies that have even greater investment potential than the broader trend. Without getting too cute and missing the boat, we seek to identify these second-order opportunities for investors willing to take on more risk. For example, we believe that cybersecurity-related equities are a promising second-order investment opportunity based on the continued rise of cloud computing companies.
- Long-Term Potential: Our investment theses are based on long-term time horizons. The vast majority of public equities we cover are developing technologies that happen gradually, then suddenly. It’s impossible to predict exactly when these inflection points occur, so we recommend directional exposure to promising opportunities by prioritizing time in the market versus timing the market. We understand that people have varying time horizons, and therefore require a unique portfolio construction specific to their situation. We are providing additional analysis for investors seeking shorter-term, safe-haven opportunities in the public equity markets.
- Risk-Adjusted Basis: We openly discuss the risks associated with certain high-growth investment opportunities. Early-stage public equities that are either charting an entirely new subsector of the economy or challenging the incumbents will experience significant volatility as their businesses materialize. We underscore these risks to ensure our readers know them before investing in a specific security. Emphasizing the critical relationship between risk and reward is an educational opportunity that we take seriously.
Sourcing Public Equity Data & Information
We source high-quality data from a variety of trusted, third-party providers. Their institutional-grade data allows our equity research team to conduct sound fundamental analysis when evaluating potential investment opportunities.
The following authoritative and trustworthy resources enable us to publish our research with confidence:
- Google Finance
- Wall Street Journal
- S&P Global Market Intelligence
We also rely on several emerging new-media resources, such as niche newsletters and podcasts, to learn from experts in a specific field. These sources of information are publicly available but are often not widely distributed. Leveraging grass-root insights into emerging investment opportunities helps us decipher promising technologies from passing fads.
Updating Our Public Equity Research
Financial markets move faster than ever thanks to a seemingly infinite amount of new information and an increasing percentage of algorithmic trading. We routinely update our content to ensure that it is accurate and relevant.
Public Equity Research Team
Our public equity research team consists of experts across many domains, each bringing their unique perspective to our research process, creating a collaborative environment where ideas and assumptions are challenged. Our team includes Chartered Financial Analysts (CFAs), data scientists, former investment bankers, in addition to Series 7 and Series 63 certified advisors. Together, our research has been featured in industry leading niche newsletters, CNBC, US News & World Report, MarketWatch, Business Insider, Fox Business, and more. To learn more, read about our editorial guidelinesthat govern our selection process.