Top Hedge Funds Teach Analysts This 3-Step Stock Framework
Business -> stock -> setups
Happy Juneteenth weekend to those in the US. Not quite a full long weekend, but a good moment to slow down nonetheless…
As such, in today’s post, I want to share a summary of an important framework that breaks down how to analyze a stock from 0 to 1. This 3-step structure is something you will see being taught at the top HF internal training programs. It’s how analysts are trained to think - from understanding the business to recognizing setups - and it’s the backbone for how great ideas and pitches are built.
We will use this framework as a map/curriculum going forward, along with some of the overlapping concepts described in The Long/Short Analyst Blueprint - As Taught at the Best Shops post. We will be digging into the most important topics in future posts.
Frame it. Save it. Remember it. We will be coming back to the concepts and questions here a lot.