Successful investing requires a focus on a company's long-term destination, rather than just its current financials. This is the function of destination analysis. It helps keep our focus on the future. We want to find and own businesses that have the right attributes to reach that destination.
Very good write up Kyle! I also have to revisit this now that my top holding is experiencing a strng downturn, it's true that the playfield changed but fundamentals still strong and management is top! I'm waiting to see what can happen here in the following months in order to reevaluate the thesis on it.
I've just finished Chapter 6 in Richer, Wiser, Happier, that touched on Nick and Zak and their Nomad Investment Partnership, before coming across this post of yours. Great one as always!
The concept of destination analysis is intriguing, isn't it. While Wall St fixates on short-term outputs, we can enhance our long-term competitive edge with destination analysis that helps us focus on the inputs required for a business to fulfill its potentials through questions such as is the business strengthening its position by providing superior products/services; is the CEO allocating capital in a rational way that brings value to shareholders; ...
Very good write up Kyle! I also have to revisit this now that my top holding is experiencing a strng downturn, it's true that the playfield changed but fundamentals still strong and management is top! I'm waiting to see what can happen here in the following months in order to reevaluate the thesis on it.
I've just finished Chapter 6 in Richer, Wiser, Happier, that touched on Nick and Zak and their Nomad Investment Partnership, before coming across this post of yours. Great one as always!
The concept of destination analysis is intriguing, isn't it. While Wall St fixates on short-term outputs, we can enhance our long-term competitive edge with destination analysis that helps us focus on the inputs required for a business to fulfill its potentials through questions such as is the business strengthening its position by providing superior products/services; is the CEO allocating capital in a rational way that brings value to shareholders; ...