Definition
Investment Thesis
A well-reasoned argument that explains why an investment will generate expected returns.
An investment thesis articulates the key reasons for making an investment and the catalysts expected to unlock value. A strong thesis identifies what the market is missing, why the current price is wrong, and what will cause the price to correct. Primary research through expert networks is essential for developing and pressure-testing investment theses—experts can validate assumptions, identify risks, and provide insights into likely catalysts. The best theses are specific, falsifiable, and based on proprietary research rather than widely known information.