Business Strategy Questions: Investment

Fundamental investing is an approach meant to focus on the real value of an investment opportunity – not just the perceived value. Many DeepBench clients use this approach to evaluate the difference between the true value of an opportunity and the hype surrounding an opportunity.

A simple rule of thumb to understanding a fundamental investing approach: invest based on what is real, not what is popular.

An easy current example to help explain fundamental investing is Bitcoin. Recently, the media has fallen in love with bitcoin and ICO’s, but what does this mean in reality? Is the real value in bitcoin, or in the blockchain, and does the success of one rely on the success of the other? Will this excitement stand the test of time? When all the hype and media is gone, what changes are everlasting? How long did this trend take to form, and how long will it take to go away?

The answer to these questions are difficult, and incredibly valuable for those who can piece together the answers. A fundamental investor trying to determine “what is real” compared to “what is popular” may turn to expert networks like DeepBench to find advisors with unique perspectives on the real opportunities in this space.

When pursuing a fundamental approach, or when consulting with fundamental investors – don’t feel any need to cushion your opinions. Dive into what is real – the good and the bad.