Spot on Saul.
More than once I’ve commented that financial analysis is not my long suit. I’m good with math and all that, I just get lost in the details of ratios and so forth. I have trouble knowing what’s important.
Since being on this board, I’ve improved, but that’s not my point. Before I even begin to look at numbers I look at the business. What do they do? How do they do it? Who are their customers? Why are they unique (moat). etc. I think anyone can do this kind of review. If nothing else, it will quickly help eliminate companies so you won’t waste too much time.
The I look at the management (though I must admit, I’ve not looked closely at the boards - my bad, I’ll start paying more attention).
If there’s problems with the management, I’m done. No numbers are going to fix bad management. The company may be doing great in a certain niche, but if the management is incompetent, or just somewhat flaky, I’m confident they can’t last long, at least not as an outstanding performer.
I only want to invest in companies that at least have a shot at being long-lasting outstanding performers.