This blog is on hiatus until early 2024.
This blog was created in 2023 to provide free stock analysis for everyone. Each month, one stock will be fully analyzed in detail on the blog. Additionally, every other Tuesday, an article with general financial guidance and opinions will be published.
The Open Source Paradigm
“Open source” was originally coined in the field of computer software to describe software in which the entire source code is open and available for anyone to copy, modify, or further develop. This movement is contrary to the proprietary paradigm of software development, in which the creator of the software retains all rights to the source code and may prevent anyone from using or adapting that code for their own needs. In the same manner, open source investing is the idea that stock analysis should be set free from its typical pay-for-access chains so that anyone can read, modify, and further adapt the analysis to suit their own financial needs.
The main goal of this site is to counter one of the most pervasive problems when talking to people about what stocks they own: they usually refuse to put their mouth where their money is (yes, you read that correctly). People have a tendency to only talk about the stocks they own or pick which have been profitable for them, while keeping their mistakes a secret. This tendency creates two additional problems. First, it gives other investors the potentially false impression that they are below average at picking good stocks. Second, it encourages people to take excessive risks in order to impress others, which often leads to subpar outcomes, thus reinforcing the dubious notion that they are incapable of picking stocks themselves. To counter these effects, this site provides not just open analysis, but an open portfolio of stocks: both the successes and the mistakes.
The Investment Philosophy
It is the first goal of this site to provide free and open analysis of various stocks. A secondary, but nonetheless important, objective is to pick stocks which, on average, outperform the market as a whole over the long run (i.e., on three-to-five year time horizons).
To achieve the secondary objective, this site seeks to find stocks which are underpriced relative to their intrinsic value. This idea is often referred to as “value” investing. Intrinsic value can be estimated—but not determined with certainty—by examining the fundamentals of a company and projecting its future cash flows and profits.
The Man Behind the Curtain
Jon Cromartie is the creator of Open Source Investing and, as of 2023, its sole analyst. Jon was first introduced to investing after graduating high school in 2008, when his grandfather gave him investing guides and let him watch webinars presented by the Investools (now Thinkorswim) website. His passion for business and investing continued to grow while majoring in Economics at Baylor University. His experience includes working as CFO of a game publishing startup and, in his current role, as the senior analyst at a economic consulting firm. He currently lives in St. Louis, MO with his wife and cat. In addition to exploring economics and financial markets, Jon enjoys playing chess and spending time with his family and his godson.