“Research is the process of going up alleys to see if they are blind.” – Marston Bates

Shrewd diligent investing starts with undertaking enough research to understand the company, (investment company or fund), its business, its fundamental strengths, weaknesses, opportunities, threats and potential under-research catalyst. Investors may fall into the trap of failing to conduct thorough research before making investment decisions. Lack of understanding about a particular investment, such as the company’s financial health or the industry trends, can lead to poor investment choices. To minimise this mistake, investors should dedicate time to researching and analysing investments, including reading financial reports, studying market trends, and seeking expert opinions. As this will enable them to be alert to the potential direct and indirect changes in performance of an otherwise solid long-term core holding.