Two phenomenal articles by @mastersinvest on "Fighting the Fade". 👏
cc: @Gautam__Baid @dmuthuk
1) On limitations of traditional DCF & other analysis (that assume low terminal growth & mean-reverting) when it comes to exceptionally durable businesses.
mastersinvest.com/newblog/2020/1…
cc: @Gautam__Baid @dmuthuk
1) On limitations of traditional DCF & other analysis (that assume low terminal growth & mean-reverting) when it comes to exceptionally durable businesses.
mastersinvest.com/newblog/2020/1…
2) Reasons for the fade (of weak/mediocre businesses) and some characteristics of extremely durable and long-term compounding machines.
mastersinvest.com/newblog/2020/1…
mastersinvest.com/newblog/2020/1…
My fav points from Part1. 👇 
My fav points from Part2. 👇
"Holding a variant perception on the sustainability of growth and resultant business worth can equip an investor with the fortitude to remain invested in these compounding machines".
"When it come’s to long term business success, sharing scale benefits with the customer, grasping increased returns, optimizing your market and ensuring an enduring culture can go a long way to fight the FADE that inflicts typical businesses."
Overall, an excellent compilation of thoughts on this topic, which is very important for long-term investors that can identify excellence and monitor/hold them for a longtime, while fighting the constant noise and temptation to sell those businesses.
/END.
/END.
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