4.13. How to Document Research
Lesson objective
Create a reproducible record.
Record the date, source, period, currency, and definitions. Save a screenshot or export when useful and include links to official filings.
Separate facts, inferences, and opinions. Reported Revenue is a fact. The idea that the company is gaining pricing power is an inference.
Update the thesis when new results arrive. Do not rewrite the past to justify a prior decision.
Write enough that your future self can audit the decision
Research becomes more useful when it leaves a record. A short document prevents hindsight from silently rewriting what you originally believed.
Minimum research record
| Field | What to write | |---|---| | Date and price context | When the analysis was made | | Business thesis | Why the company may create value | | Key evidence | 3–5 facts supporting the thesis | | Valuation | What assumptions appear embedded in price | | Risks | The strongest arguments against the thesis | | Invalidation conditions | Evidence that would make you change your mind | | Next review trigger | Earnings, filing, metric threshold, or date | | Sources | Filing/report and period used |
Version the thesis
Do not overwrite the old thesis. Keep a dated revision:
Thesis v1 → New evidence → What changed → Thesis v2
A useful invalidation condition
Weak: “Sell if the stock falls 20%.” Stronger: “Reassess if revenue growth falls below the thesis range for two comparable periods and operating margin also deteriorates without a credible temporary explanation.” The second condition is tied to the business evidence rather than market noise alone.
Separate facts, estimates, and opinions
Labeling these three categories makes later review much easier. You can then ask: Was the original fact wrong, was the estimate too optimistic, or did the interpretation fail?
The objective of documentation is not bureaucracy. It is to make learning cumulative.
What you should remember
- Record what you believed before the result.
- Separate data from interpretation.
Practice
Create a template with columns for fact, source, interpretation, risk, and follow-up.