That means that for the investment thesis to prove correct, the stock must increase entirely due to multiple expansion. That is generally viewed as a lowquality thesis, as expansion in a valuation multiple is more difficult to predict and gain confidence in than is growth in earnings.
But first, here is another interpretation of what an investment thesis is and how to create one straight from my 10th grade English class. Ms. Jones' thesis I'll never forget the way Ms. Jones (I've used a different name for privacy) taught me to develop a thesis in the first paragraph of an essay.
She described it as the bottom tip of an upsidedown An investment thesis is an investors individual strategy which helps determine which companies to invest in. It is a roadmap that disciplines an investor to invest only in the companies that conform to ones individual investment philosophy. What is an 'Investment Thesis' An investment thesis aims to take an abstract idea and turn into a functional investment strategy. An investment thesis helps investors evaluate investment ideas, ideally guiding them in selecting the best ideas that can help meet their investment objectives.
Dec 11, 2016 We call this the investment thesis. The investment thesis is no more or less than a definitive statement, based on a clear understanding of how money is made in your business, that outlines how adding this particular business to your portfolio will make your company more valuable.
Many of the best acquirers write out their investment An investment thesis is the analysis performed by a buyer to assess a potential acquisition against an established set of investment criteria. The investment thesis may be formally written up as a document or slide presentation to the buyer's investment committee for deal approval.
Many companies are" terrifyingly unclear" to themselves and investors about why they are making an acquisition, according to the authors of a new book, Mastering the Merger.
Support comes when you spell it out. by David Harding and Sam Rovit Every deal your company proposes to do big or small, strat