How to develop an investor mindset (PE interviews)?
I'm a rising senior with a FT offer at an EB looking to do some light reading and preparation over the next year before on-cycle kicks off. Thing is, while I have some familiarity with finance concepts/accounting, I don't think I have much of an investors mindset. I don't know how to analyze companies besides the basic financial metrics and maybe a basic porter's five forces analysis of the industry, but my investing fluency is lacking. So how should I go about improving this? Any books or PE guides that are especially helpful for investing mindset improvement? Thanks!
Interested
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It’s less rigid than you make it out to be. Just need to be able to dissect a business in how it makes money (what drives revenue / costs).
You can peel back layers however far to understand the drivers -> macroeconomic environment all the way to customer demographic in x region.
Have a framework for how you think about things. Ratios are important, but they only tell you so much. 60% EBITDA margin sounds nice but then you realize they have 30% CapEx spend.
I like reading industry research (from Bain&Co, BCG, McKinsey, etc.) and equity research reports on companies produced by banks. They are good do industry the key drivers of value in each sector and the latest developments
Would recommend quality investing, very good and easy read.
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