"7 Powers: The Foundations of Business Strategy" by Hamilton Helmer is a highly useful book for anyone interested in investing in high quality Co.'s for the long-term.
The overall illustration and few more important points.
Most industries are going to be impacted more and more by the ongoing Digital trends.
If companies do not have effective strategies and execution that lead them to these Powers and competitive advantages, their profits and Market caps would not be sustainable.
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I would rather keep or add to my capital to the
-Well capitalized secular growth Co.'s with
-innovative & well executing Mgmt. Teams
-high Margin recurring revenues
-Co.'s offering effective solutions by leveraging the latest tech
-developing Network effects/Switching costs.
Investing is as complicated as you want to make it.
To keep it simple, few questions I ask myself during the high volatility periods
✔️Do I understand these Companies, their Industry, underlying trends and would like to hold them for the next 5 yrs? Yes
My fav investing Teachers & what I learned from them.
✔️Long-term focus🔭
Warren Buffett
Charlie Munger
Chuck Akre
✔️Growth📈
Philip Fisher
Clayton Christensen
David Gardner
✔️Behavioral🧠
Benjamin Graham
Howard Marks
Seth Klarman
✔️Process🗒️
Peter Lynch
Pat Dorsey
Nick Sleep
Some key points on each.
✔️Long-term focus
Buffett : Business Owner mindset (as an investor) will prompt you to think/act long-term. Time is a friend of excellent Business and a foe of the mediocre ones.
Munger : Learn and practice multi-disciplinary thinking. Patience & common sense are rewarded in the long-term.
Akre : Developing a simple approach (for buying/holding) that will help you stay with the good companies for a long time.
Understanding the Market cycles and the factors that impact them (Capital availability, attitudes towards risk, optimism/pessimism taken to extremes) can be really helpful for long-term investors.
✔️On what causes Cycles and why trends go to excess
I love this new format even more as it lists the stocks mentioned (if any in detail) in the letters.
Always good to read well researched/written long or short commentary from some smart investors on our Portfolio/Watchlist companies.
My fav pts from some new ones I read recently in the thread below.
✔️Guardian Funds on investing in
-Thriving Digitally native businesses
-Founders that focus on culture, innovation, long-term thinking
-having an owner mindset as an investor