Why should you listen to a company’s earnings calls to become a good long-term investor?

If you want to be a disciplined long-term investor in equity markets and you’re not following management’s earnings calls, you’re missing out on many things.

It is one of the crucial practices that every investor should follow religiously. Generally, companies host earnings calls after quarterly results, where management discusses its results with investors and analysts.

Why does listening to management conference calls become important for investors?

Gateway to understanding the management’s thinking:

It allows you to understand the management’s thoughts about the business, the company’s future, and its strategies for the company.

Assess the company and its management:

It helps you address any red flags in the company; if you’re listening to con calls regularly, you will be able to analyse whether management is walking the talk or just talking in the air. It also helps you understand whether the company is on the right path and whether it is achieving its revenue and margin guidelines.

Helps in learning and improving investment thesis:

It improves your investment and research thesis by improving your thinking process. Also, analysts’ questions on earnings calls help you learn more about the company and unearth wider perspectives related to margins, raw materials, product demand, capex, etc.

Gain an understanding of the overall market:

Earnings calls help you become a better investor by giving you a better understanding of the overall market and the industry’s headwinds and tailwinds. It also gives you a broad perspective on the global markets, which shapes your investment decisions.

Listening to earnings calls helps you yield better returns in the long term and gives you the confidence to hold your convictions and plan your allocation accordingly.

Now, the question that can strike your mind is, “How can we listen to these earnings calls?”

Listen on Youtube

Trendlyne.com: https://lnkd.in/gszAn2z9

AlphaStreet India: https://lnkd.in/gJEzt57H

Quartr App: Quartr App: On Quartr(app or desktop version), you can listen to earnings calls ad-free, and here you also get access to reports, slides, and call transcripts in one place. Currently, on Quartr, all Indian companies are not listed, but slowly they’re adding more and more.

You can also download the earnings call recordings from the company’s investor relations page.

Happy reading!