Seen a lot people jumping to valuation without developing a reasonable business understanding.
A valuation model is as good as its inputs.
Garbage in garbage out.
A great source to understand a business is earnings conference calls or con calls in short.
They are a phenomenal source of industry insights, understanding competitive advantage besides business performance and growth ambitions.
Understanding con call transcripts is an essential step in #EquityResearch and #investing. It is also a key document for Strategy and Consulting professionals.
But here is the challenge — even if you go through con call transcripts, there is so much of information (across a wide variety of business aspects) thrown at you that you may struggle to put it all together and make sense of it.
Putting all of that info. in a framework and then looking for the missing pieces is key to building a comprehensive industry and business understanding.
In this 3-video series, I have explained how to read con calls using a company — Narayana Hrudalaya con calls — as example.
Video 1: What to look for in Con Calls?
Video 2: How to Assess Business Moat?
Video 3: How to decode future Growth from ConCalls?
