The journey that culminated in the creation of this website started over a decade ago when I created the predecessor of this website in August 2005 to share thoughts about my investment process and ideas with a small group of family and friends. Over a period of time, it evolved into something much bigger with thousands of subscribers.
My approach to investing was mostly a value based philosophy with an occasional tryst into companies that offered growth at a reasonable price (GARP). As the website evolved, my investment process evolved with it and my primary focus shifted to event-driven investing with a specific focus on two strategies that I will get to later. As is the case with many value investors, I am usually early getting into an investment. My investment philosophy was formed after following the markets continuously since the turn of the century, through multiple bubbles and the ensuing gut-wrenching crashes.
I am a self-taught investor that learnt both from the school of hard knocks and vicariously from books including some by the investment gurus Benjamin Graham, Philip Fisher and Peter Lynch. You can find some of the books that shaped my investment process in the Reading List section of this website. Throughout my life, I learnt a lot about stock investing from my father who has invested in stocks and bonds for over 40 years and is one of the more successful investors I know.
Operational experience as the founder and President of a software services company called Eugene Software Solutions and a consultant to a number of VC funded high growth start-ups in the San Francisco Bay Area has also helped me understand some of the operational challenges faced by companies.
The market moves in cycles and I realized that adhering to a strict valued-based approach could lead to underperformance during the later stages of a bull market. The likelihood of walking into a value trap goes up significantly during those times and your allocation to cash might also increase. Reading the book You Can Be a Stock Market Genius introduced me to several event-drive strategies and I took a particular interest in two of them including Merger Arbitrage and legal Insider Trading. Towards this end, I shifted the focus of the site to Merger Arbitrage (also known as Risk Arbitrage) and launched a new website dedicated to Insider Trading that aggregated data from SEC filings. After publishing weekly reports about both strategies for over five years, I decided to bring them both together under a single roof and InsideArbitrage was born.
The goal of this website is to provide an introduction to event-driven investment strategies to investors that are not familiar with them and to provide information that is updated frequently for seasoned investors that have adopted these strategies. There is always the risk that I might regress, put on my value investor hat and start pontificating about the latest value stock that catches my fancy.
Just like everyone else, I am prone to making mistakes but thankfully the “Enrons” have been few and far in-between.