Recent Activity

  • Ashish shared from Quality Investing: Owning the best companies for the long term by Torkell T. Eide, Lawrence A. Cunningham, Patrick Hargreaves
    Gross profit margin demonstrates competitive advantage: it is the purest expression of customer valuation of a product, clearly implying the premium buyers assign to a seller for having fashioned raw materials into a finished item and branding it. Although gross margin is a partial function of a company’s industry and high gross margins can reflect low asset intensity, sustained high gross profit margins relative to industry peers tends to indicate durable competitive advantage. Zeroing in on gross margins, as opposed to bottom line net income, also helps distinguish competitive advantage from...
    Note: interesting excerpt on the role of gross margins....
  • Ashish shared from Quality Investing: Owning the best companies for the long term by Torkell T. Eide, Lawrence A. Cunningham, Patrick Hargreaves
    Gross profit margin demonstrates competitive advantage: it is the purest expression of customer valuation of a product, clearly implying the premium buyers assign to a seller for having fashioned raw materials into a finished item and branding it. Although gross margin is a partial function of a company’s industry and high gross margins can reflect low asset intensity, sustained high gross profit margins relative to industry peers tends to indicate durable competitive advantage. Zeroing in on gross margins, as opposed to bottom line net income, also helps distinguish competitive advantage from...
    Note: interesting excerpt on the role of gross margins...
  • Ashish shared from Quality Investing: Owning the best companies for the long term by Torkell T. Eide, Lawrence A. Cunningham, Patrick Hargreaves
    Gross profit margin demonstrates competitive advantage: it is the purest expression of customer valuation of a product, clearly implying the premium buyers assign to a seller for having fashioned raw materials into a finished item and branding it. Although gross margin is a partial function of a company’s industry and high gross margins can reflect low asset intensity, sustained high gross profit margins relative to industry peers tends to indicate durable competitive advantage. Zeroing in on gross margins, as opposed to bottom line net income, also helps distinguish competitive advantage from...
    Note: interesting excerpt on the role of gross margins...
  • Ashish shared from Quality Investing: Owning the best companies for the long term by Torkell T. Eide, Lawrence A. Cunningham, Patrick Hargreaves
    Note: interesting excerpt on the role of gross margins...
  • Ashish shared from The Manual of Ideas: The Proven Framework for Finding the Best Value Investments by John Mihaljevic
    Mohnish Pabrai makes an eloquent case against investing in companies that become too large, echoing Charlie Munger’s latticework approach. According to Pabrai, nature seems to have imposed a size limit on mammals and companies alike.
    Note: Food for thought...