Glossarytaught in M8.03, M8.04
Deep dive
Also called three-day deep dive, full analysis.
The full rebuild of a business from primary filings, taking days rather than hours, and producing the conviction a position needs.
Deep-dive work means rebuilding the business with your own hands: reconstructing the segment history, normalising the earnings, building the capital and returns series, understanding the competitive position from several sources, and stress-testing the result.
It produces a model, a thesis, a set of monitoring conditions and a valuation range.
Most companies don't deserve this. Those that do deserve all of it.