Value in 60 Seconds: 2 Reasons Why Robust Data Matters

29 Sept 2023 · 1 min

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1:23

David Trainer explains why intrinsic value investors need robust, auditable data. Better data makes valuation models more accurate. When free data is everywhere, superior traceable data gives you a contrarian edge and higher conviction.

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You mentioned data robustness. Why is that important? I think it's for 2 reasons. One is because I'm an intrinsic value investor, and so if I want to increase the odds of my valuation being in the right ballpark, as close to the right ballpark as I can, then I want to use the right data. I want to use the rigorously calculated, robust data. And the other reason is because one of the reasons investing has become more difficult over the years is because markets have become more efficient because everyone has access to all this free data out there and all that free data looks the same. Well, if I want to have a contrarian point of view, one of the ways is to have access to better data. Better information. That's where you can find a contrarian viewpoint, a variant perception. I do believe that better data that can be proved, that can be traced back, that can be audited, provides me with higher conviction and maybe a competitive advantage. And so, yeah, having the right profit metrics matters.