Anatomy of a Stock Analysis (Part 2)
A running diary of evaluating a company for the first time.
A Lady Writing, Johannes Vermeer, circa 1665, oil on canvas (National Gallery of Art)
First, thanks for sticking around. The past few weeks have kept me away from the keyboard. I intend to get back to a more regular schedule in the coming days. Also, stay tuned for some additional announcements.
In part 1, we looked at screening for new ideas and finding opportunities in places that aren’t typically covered much. I also touched on my approach to understanding a business through its annual reports and investor presentations. If you missed part 1, click here.
In part 2, we’re going to look at how I review a proxy statement, understanding the people running the business and their financial motivations, the financials of the company, and then put the puzzle together.
As a reminder, we’re doing this exercise with medical device and supply company The Cooper Companies (NYSE: COO). It was a company that piqued my interest when looking at other medical device companies and had put together an impressive return over the past 30 years.
Let’s dig in…
Shoutout to Koyfin for their data and charts. Koyfin has become an integral part of how I screen for, track, and analyze companies. It has made the analysis process much faster thanks to having a decade worth of data at my fingertips instead of having to manually go through stacks of quarterly and annual filings.
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