1) Most important evolution for me as an investor was shifting my focus from “What is this company worth today?” to “How fast can this company compound its value over time?”
2) Leads to a focus on ROIC, reinvestment opportunities, vector of competitive advantage and risks to all of these factors.
3) Valuation comes at the end of the investment process for me.
I would respectfully modify Buffett’s quote to “the price you pay determines the return you get for a given business outcome.”
I would respectfully modify Buffett’s quote to “the price you pay determines the return you get for a given business outcome.”
