The primary purpose of this blog is to learn and develop my skills as an investor. I have always found writing to be valuable tool that helps me clarify my thoughts and forces me to develop a more clinical framework for analysis. In a world of almost limitless information and stimulation, this process helps me block out the noise and focus on the key variables that really matter.
In essence, I’m looking to invest my personal capital in durable, high quality businesses at rational prices. I believe a company should be analysed by thinking critically about its economics, its durability against competition, its future prospects, the effectiveness of management, and the price a private buyer would pay for the entire company.
My objective is to build a portfolio of businesses that can collectively compound over time and provide superior rates of return to that of the S&P 500. Quality businesses that are producing high returns on capital (and better yet, re-invested capital) can be great compounding machines over time.