One of the interesting questions to grapple with for both providers and fundamental investors is the progress towards nowcasting / more granularity of the regular 10k/10q. A big uncertainty is what the research stack / process looks like now, and how does that need to evolve in a world where business performance is just a constant known. Most investors aren't trained and equipped for this type of environment and it's likely to be disruptive.
How might the research process look in 5 years and what skills will make the difference.
I really appreciate that question. I really like the kinds of questions about what happens if/when we reach a tipping point? Most of the world is comfortable with linear progression, but when exponential changes happen, its hard for most people to adapt.
As I started to write out what I thought a reasonable outcome could be, in the event that there's 100% transparency on company results before the print, I realized there's a lot of prior assumptions to agree on about how financial markets actually work related to digesting new information and new uncertainties into the value of a tradable security. And then based on that that understanding, I would then share how the market would adapt to a hypothetical scenario where there was 100% real time accuracy of results before they were announced. I think a short reply wouldn't do it justice.
So, maybe something for a future newsletter or even a conversation to explore that scenario!
One of the interesting questions to grapple with for both providers and fundamental investors is the progress towards nowcasting / more granularity of the regular 10k/10q. A big uncertainty is what the research stack / process looks like now, and how does that need to evolve in a world where business performance is just a constant known. Most investors aren't trained and equipped for this type of environment and it's likely to be disruptive.
How might the research process look in 5 years and what skills will make the difference.
I really appreciate that question. I really like the kinds of questions about what happens if/when we reach a tipping point? Most of the world is comfortable with linear progression, but when exponential changes happen, its hard for most people to adapt.
As I started to write out what I thought a reasonable outcome could be, in the event that there's 100% transparency on company results before the print, I realized there's a lot of prior assumptions to agree on about how financial markets actually work related to digesting new information and new uncertainties into the value of a tradable security. And then based on that that understanding, I would then share how the market would adapt to a hypothetical scenario where there was 100% real time accuracy of results before they were announced. I think a short reply wouldn't do it justice.
So, maybe something for a future newsletter or even a conversation to explore that scenario!