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Presentation on Quality Stocks


Guest Schwab711

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Great, thanks so much.

 

pgs 22, 24, 25 are interesting as is the conclusion:  High quality compounders need strong management

 

 

That about sums it up.  The interesting part is what do we try to avoid then he has Coke and GE.  So, how do you know this will happen?  Apparently Coke cant be managed by a Ham sandwich.  Who is to say Nestle or any of his other examples dont get blindsided sometime with bad management. 

 

It strikes me the whole analysis only works retrospectively (survivor bias). 

 

Also, where are the financials?

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Great, thanks so much.

 

pgs 22, 24, 25 are interesting as is the conclusion:  High quality compounders need strong management

 

 

That about sums it up.  The interesting part is what do we try to avoid then he has Coke and GE.  So, how do you know this will happen?  Apparently Coke cant be managed by a Ham sandwich.  Who is to say Nestle or any of his other examples dont get blindsided sometime with bad management. 

 

It strikes me the whole analysis only works retrospectively (survivor bias). 

 

Also, where are the financials?

 

Don't know enough of Coke, but certainly in the case of GE, there used to be plenty of commentary that too much of their earnings was coming from GE Capital long before '08-'09.  Although it takes great perception for someone to foresee the trouble to come once the company became a financial in drag.  Along similar line though, Buffett did own and then managed to be flexible enough in his thinking to sell Freddie Mac way before their demise.

 

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