Approach
Allegory exists to publish research on a small number of wonderful businesses, in the tradition of investors like Buffett and Munger.
A wonderful business, as understood here, is one that earns high returns on capital, has the runway to reinvest those returns at attractive rates for years, is run by people who treat shareholders as partners and allocate capital with discipline, and operates from a competitive position that is durable enough to defend across business cycles. These businesses are rare. Most public companies do not qualify. The work of an investor is largely the work of finding the few that do and waiting patiently for the price to make sense.
The valuation discipline here is straightforward: intrinsic value is a function of the cash a business will generate over a long horizon, not of where the security is currently priced. Buying wonderful businesses at reasonable prices beats almost any alternative over a horizon that matters. Selling discussions begin only when the underlying business changes, not when the price moves.
Allegory's working premise is to operate with a 20-year horizon in a quarterly industry.
Temperament matters as much as analysis. The ability to do nothing for long periods, to sit through drawdowns in good businesses, and to ignore the noise of quarterly outcomes is the work. Most investing failure is behavioral, not analytical.
What will and will not appear
Allegory publishes full theses on individual businesses, framework pieces on how those businesses are evaluated, and reflections on mistakes and revised thinking. It does not publish market forecasts, macroeconomic predictions, price-level calls, watchlists, or commentary on the news cycle.
About the author
Reed Casey is an economics major at Colgate University. He runs a personal portfolio with thesis memos written before every position is opened and is building toward a career in concentrated long-only investing.
Allegory is the public record of that work.