Nice write-up, impressive level of detail. If I can make a suggestion, I would say try to focus a bit more on the qualitative. What actually allows returns above the cost of capital for this business? Economies of scale are one thing, but they exist almost everywhere - why is this company specifically able to earn almost 30% on net unlevered assets? I think this is the single most important thing to think about when looking at a company.
Thanks for the feedback! Indeed, the "quantitative" part is actually the easy one. I am trying to focus more and more on the "qualitative" side of businesses, as this is the area that can really give an edge. For that, reading Bruce Greenwald, Michael Porter, Hamilton and the likes is helping a lot.
Nice write-up, impressive level of detail. If I can make a suggestion, I would say try to focus a bit more on the qualitative. What actually allows returns above the cost of capital for this business? Economies of scale are one thing, but they exist almost everywhere - why is this company specifically able to earn almost 30% on net unlevered assets? I think this is the single most important thing to think about when looking at a company.
Thanks for the feedback! Indeed, the "quantitative" part is actually the easy one. I am trying to focus more and more on the "qualitative" side of businesses, as this is the area that can really give an edge. For that, reading Bruce Greenwald, Michael Porter, Hamilton and the likes is helping a lot.