Why isn’t the blog entirely free?
First, of course, due to being my main job, I want to make a living of it. That should be no big surprise. The other thing is, you are free of third-party advertising / spam and I am not going to post any affiliate links. Just pay for content. No third-party interests or influence.
And lastly, you are benefiting from my experience, knowledge and my time! You receive quality research, compressed into an easy to digest format. What takes you maybe an hour to read takes me a multiple of it to research and produce.
Why do I write short reports and not long, extensive ones?
Short answer: It’s about simplicity and your time.
Long answer: For me the big goal (and challenge) is to be clear and on point with my investment theses. For every aspect I look at the aim is to write down the main points cleanly on a single page. The research I am doing beforehand is not reduced, however, quite the opposite. My research process is extensive. I am spending several hours of time to crush together what is necessary into an easy comprehensive and digestive format for you. It is a service from me and also my philosophy to be spot on. Because I value your time!
Why did I call this blog Financial Engineering?
This somewhat provoking and confusing name is not derived from those wizardries many companies and financial institutions do to beat short-term quarterly expectations by a few pennies.
I am a fundamental investor, but you have to get the bigger picture, too, to spot trends. To be able to invest with a high conviction and, even more important, to stick with “your” companies through psychological difficult times, you must have a good understanding of the many gear wheels of the underlying company.
Among others, I think of the business model itself and its robustness, of the industry the company is operating in, the growth prospects, the whole (political) environment, the management (ideally founder-led with skin in the game) and its capital allocation skills as well as the quality of the finances with high capital returns.
Quality and risk management.
Due to being an engineer per education gone into financials, I thought “Financial Engineering” would be the proper name for my blog.