I prefer investing the lazy way

You can either have a top-down or a bottom-up approach to investing. Most value investors choose bottom-up. Warren Buffett is a perfect example for this, he always invested in businesses first instead of looking at particular sectors or industries or countries.

But there are some value investors with a top-down approach, for example, Ken Fisher, who wrote about it in many of his books.

I have also done some top-down value investing. In 2020, I was looking at Copper miners because I expected $COPPER.FUT prices to go up, and then, invested in Freeport-McMoran.

But I don't own $FCX anymore. And that's the thing with top-down. Once the thesis why you invested change, you probably have to sell the position. You are basically investing in cyclical stocks.

I don't mean that it is a bad strategy. But this is not how you find compounders, stocks that you can own for decades without doing much work.

I found $WISE.L as a great company with great management, I then moved up, looking at the competition. I wasn't sure if I was going to invest in it. My margin of safety had to be big but the better I understood the industry, the less margin of safety I needed.

And even if I didn't invest in Wise, I still would have expanded my circle of competence.

But once this is done, there's little extra work. You just let it compound. I prefer investing the lazy way.

$BRK.B

I speak more about this on my weekly update on my investment community:

https://nas.io/ishfaaqpeerally/feed/lsqi