Reporting season is a busy time for us at Montgomery Investment Management. Studying results announcements is one of the ways we try keep on top of what is happening in the market and identify economic trends and investment opportunities.
We do this in a fairly systematic way. Every day we review, evaluate and catalogue every last results announcement made that day. As I write, we have reviewed several hundred sets of financial statements and the accompanying commentary, representing around $700B of aggregate market capitalisation, with many more still to come.
This analysis draws our attention to individual companies that are performing well, and complements the automated stock screening tools we use, including Skaffold. It also gives us a sense of broader economic trends and the relative health of different parts of the economy.