Collaboration

“Talent wins games, but teamwork and intelligence wins championships” Michael Jordan

Most of us work in teams nowadays. Most of us claim we work collaboratively. But how does this work in investing when you typically research an investment idea on your own? How do you make the investment decision process a collaborative one? Surely this would make the decisions stronger and more robust.

There are many ways to ensure that the analyst is not on their own working up an idea. Institute a ‘buddy’ system. Every piece of company research has a lead researcher but also a buddy, someone the lead could speak to if any issues arose. Make sure there is an early-stage idea pitch to the rest of the team. This helps bring in broader experience and helps channel the direction of the research. This makes the process more efficient but also means the lead researcher doesn’t get blind-sided after doing a lot of work. Towards the end of the research process make sure there is a team discussion to tie up any loose ends and avoid any redundant completed work.

The result? A higher quality of research output and a higher success rate of ideas making it into the portfolio. So, if you work in a team, have a think about the techniques you might employ to harness the talent and win the championships.

?

Alan Porter

30 August 2024