In ‘The New Rational Manager’, Charles Kepner and Benjamin Tregoe, outline their approach to solving problems. Their framework targets the gap — deviation — between expected and actual outcomes.
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The analysis can then start by asking what, if anything, is distinctive about the ‘is’ from the ‘is not’ for each parameter.
Since people tend to think ‘what is’ rather than ‘what is not’, the Kepner Tregoe approach helps target the ‘what is not’ deficiency.
Qualitative investment analysis is about understanding a business before taking out your calculator. This blog teaches you how to do it for common stocks.
