Great article. A variation on the quote 'You can’t compare Fords to Ferraris': in real estate, the three most important factors are location, location, and location. Similarly, for a quality investor, ROIC/ROCE is as crucial as location is for a real estate investor.
Indeed and good point! I think many quality investing lessons apply equally to real estate investing. Its better to focus on a great RE asset in a good and growing area with a lower yield
Yeah, financial media always look at the surface level information - Terry teaches us to go deeper to understand the underlying business quality and not just talk about PEs
Maestro Terry Smith is the Man! His book "Investing For Growth" and many interviews have had enormous influence on my thinking and investing philosophy.
There aren't many businesses that fit the criteria. I think even simply automating the process purely based on numbers by using these criteria would yield good returns.
Great article. A variation on the quote 'You can’t compare Fords to Ferraris': in real estate, the three most important factors are location, location, and location. Similarly, for a quality investor, ROIC/ROCE is as crucial as location is for a real estate investor.
Indeed and good point! I think many quality investing lessons apply equally to real estate investing. Its better to focus on a great RE asset in a good and growing area with a lower yield
With his killer eyebrows, right?
Absolutely 😂👌🏽
P/E tells you nothing about the value. Loved that. Especially when all we hear these days is how high P/E ratios are in Big Tech.
Yeah, financial media always look at the surface level information - Terry teaches us to go deeper to understand the underlying business quality and not just talk about PEs
Maestro Terry Smith is the Man! His book "Investing For Growth" and many interviews have had enormous influence on my thinking and investing philosophy.
Awesome article, Marius! Thank you!
Thank you, Pavel! Terry has impacted my investing approach a lot as you know. I love to study his stock picks and how he thinks about investing!
Great post and useful resources below. Thank you. Those gumroad links are pain in the ass though))
There aren't many businesses that fit the criteria. I think even simply automating the process purely based on numbers by using these criteria would yield good returns.