Investment thesis
Also called: thesis
A short written statement of why a share may be worth more or less than its price, built on a few explicit, testable assumptions.
A good thesis names the key drivers, the assumptions, the gap with what the market expects, the downside, and what would prove it wrong. Writing it down before investing makes it possible to monitor and review honestly.
Learn more in these lessons
- Writing an investment thesis and research reportHow do you turn research into a clear written thesis?
- What would prove you wrongHow do you decide in advance what would make you change your mind?
- Monitoring an investment thesisWhat should you keep checking after you have bought a share?
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