As part of our Next Invest conference, Covestor’s Mike Tarsala recently spoke with David Trainer, Managing Partner at Novo Capital. Trainer is a financial sleuth who closely analyzes the longer 10-K corporate filings other investors tend to ignore. He is looking for signs of trouble not widely recognized by the broader market. He is author of Modern Tools for Valuation (Wiley Finance 2010).
Trainer says that SEC filings that companies submit offer far more detail to an investor than the daily tick-tock corporate news reported on CNBC and in the financial press. “That’s where the good data goes to hide,” he says. For example, Novo Capital recently made money for its clients after Trainer spotted signs of pension trouble at Delta.
He recommends that investors ask their financial managers if they are doing this kind of deep dive analysis to guide their trading decisions. A true investor, says Trainer, is focused on the “long-term cash yield of an asset.”