On the Hunt for Great Companies

Simon Kold 지음

Wiley 2024년 10월 22일 출간

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책소개

Essential investment guide to perform sophisticated practical analysis on long-term business quality An unparalleled practical training tool for investment analysis, On the Hunt for Great Companies: An Investor's Guide to Evaluating Business Quality and Durability helps readers move beyond using rules of thumb for companies or investment hypotheses based on broad-level pattern recognition and instead start using a more thorough approach through sophisticated empirical analysis. Readers will learn how to assess all the essential traits of a good business, including passionate management, staying power, abnormal reinvestment options, low dependency risk, and to identify emerging quality. This book is supported by a wealth of real-world examples, both contemporary and historical, detailed original illustrations, and true business stories and anecdotes from investor and former comedian Simon Kold. In this book, readers will learn about: Elements of intense and durable competitive advantage such as scale economies, switching costs, network effects, brands, proprietary resources, and modest value extraction Methods to formulate falsifiable test statements and empirically test those predictions, rather than relying on heuristics or box-checking Incorporates memorable investment advice through Kold’s trademark humorous style Detailed, sophisticated, and highly actionable, On the Hunt for Great Companies is an essential for professional investors of all sizes, in all industries, in both public and private markets.

목차

Acknowledgments xiii List of Figures xv List of Tables xix List of “Let’s Sniff Around” xxi Introduction 1 Part I What Makes Some People Create Exceptional Long- term Per-share Business Performance? 7 Chapter 1 Passion 9 1.1 Perseverance and Internal Motivations 11 1.2 Focus on All Stakeholder Constituencies 14 1.3 Decision- making Time Horizons 17 1.4 Career Path and Tenure 18 1.5 Retention of People 23 1.6 Authenticity Indicates Passion 25 Chapter 2 Long- term Incentives 35 2.1 Board of Directors 38 2.2 Disincentives 40 2.3 Transactions in Own Shares 42 Chapter 3 Capital Allocation 45 3.1 Value- accretive Buybacks versus Buybacks 47 3.2 Hurdle Rates Should Be Determined by Alternatives 50 3.3 Value Destructive Acquisitions 52 3.4 Unsung Capital Allocators 53 3.5 Metrics and Vocabulary 54 Chapter 4 Reliable Communication 57 4.1 Past Predictions and Ex Post Outcomes 59 4.2 Genuineness as Indicator of Reliability 61 Part II What Makes Competitive Advantages Intense and Durable? 65 Chapter 5 Economies of Scale 73 5.1 Relative Scale and Relevant Market 75 5.2 Prohibitive Costs 76 5.3 Evaluating the Intensity and Durability of Economies of Scale Advantages 77 5.3.1 General analyses 77 5.3.2 Distribution network density 84 5.3.3 Purchasing scale advantages 86 5.3.4 Marketing scale advantages 88 5.3.5 Production scale advantages 89 5.3.6 Related concepts 90 Chapter 6 Switching Costs 93 6.1 Sticky Customers, Add- on Products, and “Cost of Switching” 95 6.2 Switching Cost Multipliers 97 6.3 Evaluating Intensity of Switching Cost Advantages 98 6.3.1 Costs of switching 98 6.3.2 The arbitrage of switching costs 100 6.3.3 Ch

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저자(글) Simon Kold