Part 10/13:
He advocates for training yourself in first principles thinking—a rigorous approach that combines macro knowledge with detailed company modeling. This, combined with constant learning and community engagement (e.g., through platforms like pioneer.net), equips an investor to better predict the future.
The Dark Secret: Wall Street’s Limited Valuation Skills
In a revealing conclusion, the speaker claims that Wall Street and many analysts lack the genuine expertise in valuation and forward modeling. They often rely on outdated ratios or simplified assumptions, which can lead to mispricing opportunities for informed investors.