Investment Group Analysis Format

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