In process of following advice of "Invest only in what you know," I'm trying to see if I can actually understand a damn thing about the companies that I'm looking at.
The process seems easy - break it down into Revenue, Cost, Assets, Liabilities, Risks, Questions and Future Plans. Add on management execution, HR and external stuff.
Knowing all that, it should be pretty easy to value the company. After all, if you know where money is coming in from, where the money is going out to, what they own and owe, and possibilities of things coming in your way, it should be all cool.
Turns out, most companies' Financial Statements are too shabby to construct correct picture of REVENUE never mind anything else. It's shit hard to put things together using the models built. You can't see how the money comes in and goes out.
It's worsened by the fact that most of these companies is PR geniuses.
More on various methods to do this to come under the title of Wading through dogpoo.
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