How to Become a Good Investor
We recently launched a new program at Permanent Equity with the goal of hiring investment analysts for a predetermined period to help us increase our deal flow and help them become better investors. Here are the details of the program, but what I hope is most interesting is the idea that we intentionally didn’t overengineer the details and are interested in candidates with a broad range of backgrounds and experiences.
Not a CFA? Not a problem.
Never built a DCF model? We can teach you how to do that.
Don’t know what an Iron Condor is? I wish I didn’t either.
The reason for that is there is no clear cut expertise that makes someone a good investor. Math matters, sure, but so does temperament, curiosity, communication, salesmanship, confidence, humility, and so much more. Moreover, the way we do it, investing is a team sport, so it’s also important that you fit but also don’t in such ways that it makes our team stronger and more resilient.
Finally, I’d add that I don’t even know that I’m wedded to some of the preferred qualities we listed. Are they preferred? Sure. But these two right here would have meant that a version of Past Me would not have been qualified for the job.
The point is that I think anyone can become a good investor regardless of where they’re starting from. The key is getting real reps and transparent feedback to find the approach that works for you. Those things are each easier said than done, of course, but I think we can offer both.
– By Tim Hanson
