Quality investing : owning the best companies for the long term / Lawrence A. Cunningham, Torkell T. Eide and Patrick Hargreaves.

Format:

Book

Author/Creator:

Cunningham, Lawrence A., 1962- author.

Eide, Torkell T., author.

Hargreaves, Patrick (Investment banker), author.

Language:

English

Subjects (All):

Investments--Decision making.

Investments.

Physical Description:

xix, 195 pages ; 24 cm

Place of Publication:

Petersfield, Hampshire, Great Britain : Harriman House Ltd., 2016.

Summary:

"Quality. We all make judgments about it every day. Yet articulating a clear definition of quality in an investing context is challenging. This book addresses the challenge, and distills years of practical investing experience into a definitive account of this under-explored investment philosophy. Finance theory has it that abnormal outcomes do not persist, that exceptional performance will soon enough become average performance. Quality investing involves seeking companies with the right attributes to overcome these forces of mean reversion and, crucially, owning these outstanding companies for the long term. This book pinpoints and explains the characteristics that increase the probability of a company prospering over time - as well as those that hinder such chances. Throughout, a series of fascinating real-life case studies illustrate the traits that signify quality, as well as some that flatter to deceive. The authors' firm, AKO Capital, has a strong track record of finding and investing in quality companies - helping it deliver a compound annual growth rate more than double that of the market since inception.Quality Investing sheds light on the investment philosophy, processes and tough lessons that have contributed to this consistent outperformance"--Dust jacket.

Contents:

Chapter 1 Building Blocks 7

A Capital Allocation 11

B Return on Capital 19

C Multiple Sources of Growth 23

D Good Management 31

E Industry Structure 35

F Customer Benefits 44

G Competitive Advantage 52

Chapter 2 Patterns 59

A Recurring Revenue 62

B Friendly Middlemen 69

C Toll Roads 73

D Low-Price Plus 78

E Pricing Power 84

F Brand Strength 89

G Innovation Dominance 96

H Forward Integrators 101

I Market Share Gainers 106

J Global Capabilities and Leadership 110

K Corporate Culture 114

L Cost to Replicate 120

Chapter 3 Pitfalls 123

A Cyclicality 126

B Technological Innovation 135

C Dependency 139

D Shifting Customer Preferences 143

Chapter 4 Implementation 149

A Challenges 152

B Mistakes when Buying 158

C Mistakes of Retention 163

D Valuation and Market Pricing 171

E Investment Process and Mistake Reduction 175.

Notes:

Includes bibliographical references and index.

ISBN:

9780857195012

0857195018

OCLC:

930664411