Owning a sector
Weeks 1–4: Coverage · Capital Allocator Fellowship
You are assigned a sector and you own it for sixteen weeks. Every company in it, the economics, the participants, the history, the current dislocations.
Why coverage first
An analyst without coverage produces opinions. An analyst with coverage produces comparisons — and every useful judgement in investing is comparative. Is this cheap? Compared to what? Is this margin good? Compared to whom, at what point in the cycle?
Coverage is what converts an isolated valuation into a view.
What the first four weeks produce
A complete universe. Every meaningful company, public and private, with size, positioning, ownership and economics. Twenty to eighty names depending on the sector.
A profit pool map, today and five years ago, with a view on where profit is migrating and why.
A cycle history. What happened in the last two downturns: which companies failed, which took share, what the leading indicators were. Most people covering a sector have never looked at what it did in 2008 or 2020 in detail. Doing so is a genuine advantage.
A ranked watchlist with a one-line thesis on each name.
A sector note, ten pages, that someone unfamiliar could read and understand what matters.
How you will be assessed
On whether the note tells a reader something non-obvious. Description is not the deliverable. The deliverable is a claim about the sector that is specific, supported and capable of being wrong.
Work this through
Deliver the sector note by end of week four: universe, profit pool map, cycle history, ranked watchlist, and a central non-obvious claim.
Ten pages. It will be reviewed line by line in week five.
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The remaining lessons, the workshops, your progress tracking and notes are included with Fellowship membership.