Investing takeway

One of the mental model to take note which is brought up by Monish Prabai.

Pay special attention to a lousy industry when it starts to undergo a period of consolidation. You will be able to see margin increases, higher pricing power etc and the overall industry doing better as a whole.

We have seen it happen in the railroads industry , the airlines industry and the SD ram industry, The common  factor will be these industries are highly capital intensive.

However, is barriers to entry required prevent further entrants from entering the industry?, For example, in the railroad case clearly there are certain barrier of entry but for the airlines and SD ram industry less so ( With sufficient capital. anyone can buy plants or planes). 

Guy spier

The sequence of research should be from the least biased point of view , The legal materials(the 10Ks, 10Q), follow by the management conference calls and lastly, the opinion of forums.