Scrum

Scrum is an Agile framework for managing complex projects, originally born in the world of software development. Think of it as a playbook for teams to tackle big problems in small, manageable pieces. Instead of a long, drawn-out process with a single “big bang” delivery at the end, Scrum breaks work into short, consistent cycles called “sprints.” Each sprint, typically lasting two to four weeks, results in a tangible piece of progress. The entire process is built on transparency, regular inspection, and quick adaptation. While you won't find Scrum discussed in traditional finance textbooks, its principles are a goldmine for the modern investor. It provides a powerful mental model for evaluating a company's operational agility and a brilliant, practical system for organizing your own investment research to avoid being overwhelmed and to ensure you make consistent, disciplined progress.

Imagine you're building a LEGO castle. Instead of trying to build the whole thing at once, Scrum has you build one turret in the first week, the main gate in the second, and so on. After each week, you have a finished piece you can look at and get feedback on. This is Scrum in action.

In the official Scrum guide, there are three main roles. For a solo investor, you'll wear all three hats!

• The Product Owner: This is the visionary. They decide what needs to be built and in what order. As an investor, this is your “CEO-self,” setting your investment goals, defining your criteria for a great business, and prioritizing your watchlist.
• The Scrum Master: This is the coach and facilitator. They ensure the process runs smoothly and remove any roadblocks. This is your “disciplined-self,” making sure you stick to your research schedule and don't get sidetracked by market noise.
• The Development Team: These are the builders who do the hands-on work. This is your “analyst-self,” the one who actually reads the annual reports, builds the valuation models, and does the deep-dive research.

Scrum is organized around a series of recurring events that create a steady rhythm.

• The Sprint: This is the heartbeat of Scrum, a fixed-length period (e.g., one month) where you aim to complete a specific goal. For an investor, a sprint could be “Complete a full analysis of Company ABC.”
• Sprint Planning: At the start of a sprint, you decide what you'll accomplish. You pull an item from your watchlist (the “Product Backlog”) and break it down into the specific research tasks you'll do.
• Daily Scrum: A short, 15-minute daily meeting to sync up. As a solo investor, this can be a five-minute morning check-in: What research did I do yesterday? What will I focus on today? Are there any obstacles (like a confusing financial statement) in my way?
• Sprint Review: At the end of the sprint, you look at what you've accomplished. You might review your completed research notes or valuation model and make a decision: invest, wait, or discard the idea.
• Sprint Retrospective: This is where you reflect on your process, not just the result. What went well in your research this month? What could be improved? This focus on continuous improvement is key to expanding your circle of competence.

This all sounds great for tech companies, but what's the connection to value investing? The link is twofold: evaluating companies and improving your own process.

A company that effectively uses Scrum or other Agile methods is often more adaptable, innovative, and responsive to customer needs. This can be a huge competitive advantage and a powerful indicator of high management quality. An agile culture allows a company to pivot quickly when market conditions change, strengthening its business moat. When analyzing a business, look for clues that it operates with this kind of efficiency. Does its corporate literature talk about iterative development? Do its job postings call for “Agile Coaches” or “Scrum Masters”? A company that thinks in sprints is often a company built for the long run.

The most powerful application of Scrum is on your own investment methodology. It turns the daunting task of “analyzing the market” into a calm, structured, and repeatable process.

• Beat Procrastination: By breaking your research into small, month-long sprints, you create focus and a sense of urgency. Instead of a vague goal to “find good stocks,” you have a concrete goal to “analyze one company this month.”
• Ensure Consistency: The steady rhythm of sprints ensures you are always making progress on your research, even when you're busy. It professionalizes your process, moving it from a sporadic hobby to a disciplined operation.
• Improve Continuously: The Sprint Retrospective is perhaps the most valuable tool for an investor. It forces you to regularly ask: How can my analysis be better? Am I making the same mistakes? Am I learning from my winners and my losers? This structured self-reflection is the fastest way to become a better investor.