Investment Group Analysis Format
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A group of value investors in New York formed a structured investment discussion group to share and analyze investment ideas. Here's how it worked:
Core Structure
- Met regularly (sometimes weekly) in member's office
- Notable members included Whitney Tilson and Bill Ackman
- Required written stock analysis from one presenter per meeting
- Followed structured format but allowed organic discussion
Meeting Format
- One person presents detailed written stock idea
- Group discusses the analysis in-depth (30-45 minutes)
- Side discussions and additional ideas emerge naturally
- Follow-up activities often occurred after meetings:
- Company visits
- Conference call note sharing
- Social/business related gatherings
Key Benefits
- Meta-information exchange beyond just stock picks
- How others think about investments
- Different perspectives on analysis
- Network effects from group knowledge
- Created ongoing email chain for continued discussion
- Built lasting relationships between members
- Provided structured accountability for research
Example Impact: Farmer Mac Case
- Guy Spier presented Farmer Mac as investment idea
- Bill Ackman later took opposite position (short)
- Demonstrated value of group critique:
- Ackman found fundamental flaws in business model
- Showed importance of deeper analysis
- Revealed gaps in surface-level research
- Led to valuable learning experience for members
Success Factors
- Common investment philosophy (value investing)
- Regular commitment to meetings
- Written analysis requirement
- Open discussion format
- Follow-up activities and relationship building