Themes and idea baskets

A theme starts from an idea, such as spending on the power grid, and lists the companies that are exposed to it. Each line says what the company does, why it fits and what would break the fit.

Reading a basket#

• The thesis at the top is the claim the basket depends on. If you do not believe the thesis, the list is not useful to you.
• Each line has a reason. A company that fits because 80% of its revenue comes from the theme is a different thing from one that fits because of one product line. The reason tells you which.
• What breaks it is the evidence that would make the line wrong.
• The basket has no weights. It is a list of candidates, not a portfolio.

Who writes it#

The per-line reasoning is written by a model from the company's filings and our data on it, and is labelled as such. The figures beside each line (price, valuation, call) come from the same data as the stock report and are not model-written.

From a theme to something you track#

• Add the lines you care about to your portfolio as watched names.
• Run the tickers through the backtester to see how that set behaved in the past, and read the hindsight warning that comes with it.
• Ask for your own basket in Ask by describing a thesis in a sentence.