2. Attempt to Focus on Exceptional Businesses
- We believe a focus on quality businesses can improve our margin of safety and long-term compounding opportunities.
- We evaluate the quality of a business by its:
- Operating economics
- Competitive advantage
- Market opportunity
- Pricing power
- Capital intensity
- Management skillset
- Every day we seek to improve our knowledge of the universe of businesses that we define as great or that are blazing a trail toward greatness. These businesses must be understood in view of their long-term sustainability, not by short-term data points.
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