Unveiling Our Modus Operandi

In this post I want to show you how the 3rd volume of the European Jewels Collection is being prepared, and how we work the available information in order to maximize the potential returns from our financial investments.

I have been analyzing information regarding the next volume of the European Jewels collection. This process has taken some time since I had some doubts regarding the industry that I wanted to choose as my next investment target.

After big ponderation I choose to analyze the steel industry. In my investing philosophy I use one big assumption: “In any given industry there is at least one good company operating”. This idea is at the core of my investment approach, and I believe that it holds true for the steel industry. This means that in the steel industry, very penalized by the current macroeconomic environment, there will be at least one good company worth buying at a heavily discounted price. For this to be successful we will have to correctly identify what differentiates competent companies from its mediocre counterparts.

Timely product innovation, industrial efficiency and correct market approach are key success factors in the steel industry. With these three factors under control a given company should be able to be successful.

My work here is to identify the companies that possess these characteristics and are able to take advantage from them.

Once we get this done we just have to see if the price is right and what percentage of our capital we want to allocate in this company. This part of the job just needs a little bit of knowledge of valuation ratios to understand perfectly the price we are paying in relation to what we get has a shareholder. The rest of the job, if everything works smoothly, is done by the competent engineers, workers and machinery, now working for you.

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