The concept of quality is familiar. Copyright © 2020 Apple Inc. All rights reserved. For these companies valuations at many point of time will look more expensive than overall market, but due to the longevity of the earnings markets will under price them. Execellent book on quality investing. Welcome back. Patterns emerge when reviewing companies perceived as meeting these criteria: recurring revenue, friendly middlemen, toll roads, low-price plus, pricing power, brand strength, innovation dominance, forward integration, market share gainers, global capabilities and leadership, corporate culture, cost to replicate. 0 . Get The Full Warren Buffett Series in PDF. This book addresses the challenge, and distills years of practical investing experience into a definitive account of this under-explored investment philosophy.Finance theory has it that abnormal outcomes do not persist, that exceptional performance will soon enough become average performance. ;- Stephen Blyth, President and CEO, Harvard Management Company, Professor of the Practice of Statistics, Harvard University; It talks a lot about what makes a business great, how to identify great businesses ... etc, and spend a short chapter on why the market tend to under-value high quality companies. Lawrence Cunningham: Quality Investing outlines the investment philosophy of AKO Capital, and the lessons its portfolio managers, my co-authors, have learned.AKO, a … The framework is very similar to that used by Berkshire Hathaway (in short: companies with predictable recurring revenues that generate high cash-flow returns on invested capital with durable competitive moats which allow a company to consistently compound intrinsic value over long periods of time). People make judgments about it every day. The framework is very similar to that used by Berkshire Hathaway (in short: companies with predictable recurring revenues that generate high cash-flow returns on invest. We all make judgments about it every day. "Investing is a continuous process of learning, and it will be a rare investor who does not glean substantive lessons from the notable AKO story of quality investing." View information on AKO CAPITAL LLP, AKO CAPITAL LLP's fund, past performances, historical stock allocations and more. It's written as a sort of intro to AKO Capital and their beliefs. The authors' firm, AKO Capital, has a strong track record of finding and investing in quality companies - helping it deliver a compound annual growth rate more than double that of the market since inception. The authors' firm, AKO Capital, has a strong track record of finding and investing in quality companies - helping it deliver compound annual growth rate more than double that of the market since inception. With his exceptional performance, he was appointed portfolio manager of Skagen Global Fund. The authors are portfolio managers at AKO Capital, supported by Prof. Lawrence Cunningham, who has compiled Warren Buffett’s letters and written Berkshire Beyond Buffett.. www.qualityinvest.sk Quality investing, however, not only looks at the price of a stock, but also at the quality.In other words, quality investors try to buy ‘good’ companies, not just cheap companies. Book. Really enjoyed this read. “Quality Investing” is about London based AKO Capital Management, a company with currently around 9 bn USD under management. Patterns emerge when reviewing companies perceived as meeting these criteria: recurring revenue, friendly middlemen, toll roads, low-price plus, pricing power, brand strength, innovation dominance, forward integration, market share gainers, global capabilities and leadership, corporate culture, cost to replicate. Quality Investing. Just a moment while we sign you in to your Goodreads account. Sheeraz Raza - Dec 10, 2015, 9:17 am. I listened to it, and the narration was horrible. Yet articulating a clear definition of quality in an investing context is challenging. Quality investing or Quality Factor Investing is a relatively new way of selecting stocks. University of Oxford Patrick Hargreaves is the author of Quality Investing. Get the entire 10-part series on Warren Buffett in PDF. Assim, os autores fazem um bom trabalho em descrever exemplos práticos de uma série de características e diferenciais competitivos (moats) que proporcionam retornos altos e consistentes ao longo do tempo … Yet articulating a clear definition of quality is challenging. He has started his financial career as an associate at McKinsey and began handling higher positions thereafter. The book is full of short and simple rules how the process for quality investment should look like. Lawrence Cunningham: Quality Investing outlines the investment philosophy of AKO Capital, and the lessons its portfolio managers, my co-authors, have learned. - Stephen Blyth, President and CEO, Harvard Management Company, Professor of the Practice of Statistics, Harvard University. Three characteristics indicate quality: strong predictable cash generation, sustainably high returns on capital and attractive growth opportunities. Quality. Gabler’sInvestor Seminar AKO Capital LLP is authorised and regulated by the Financial Conduct Authority Registered in England No. The concept of quality is familiar. Feel like it's almost an exercise in confirmation bias for my investing philosophy, and I'm cognizant and worried of "fads" similar to the outsiders book haha. Save it to your desktop, read it on your tablet, or email to your colleagues The author goes briefly into many case studies, primarily European names, as well as a few of their investing mistakes. Currently, he re-joined AKO Capital as its portfolio manager. Almost all chapters are illustrated with small case studies about listed European companies. According to AKO, 3 characteristics indicate quality: 1. The book is a thorough checklist of the ingredients of investing in quality businesses, and provides a litany of examples to illustrate the various checklist items. The authors' firm, AKO Capital, has a strong track record of finding and investing in quality companies - helping it deliver a compound annual growth rate more than double that of the market since inception. Refresh and try again. Quality Investing: Owning the Best Companies for the Long Term. Pretty comprehensive, complete list of things to think about when investing; Some interesting cases and it all makes sense. Discover lots of new and upcoming nonfiction reads this spring Start by marking “Quality Investing: Owning the Best Companies for the Long Term” as Want to Read: Error rating book. A great book that every investor should read and re-visit regularly. The struggle, at least for me, is more about at what valuation does it start to make sense. I have reviewed already 2 of them, “Capital Returns” from Marathon Asset Managament and “Simple but not easy” from Oldfield Partners. January 5th 2016 by Harriman House. Quality Investing is a short, sweet and engaging book that aims to institutionalise the lessons learned from refining AKO Capital’s quality-focussed investment philosophy. By these means, we aim to achieve returns that materially outperform the market with lower volatility. The book details investing in so called quality companies (richly valued companies is one definition). Let us know what’s wrong with this preview of, Published It's good and easy read book not wholly fulfilling. Typical quality pitfalls are cyclical growth, temporary tailwinds of fickle consumer trends and technological leadership vulnerable to disruption. Goodreads helps you keep track of books you want to read. PE ratios are high, but quality companies typically continue to exceed estimates year after year, and waiting for them to appear very cheap by conventional standards rarely occurs, except in widespread market declines. Quality Investing sheds light on the investment philosophy, processes and tough lessons that have contributed to this consistent outperformance. Quality Investing has sold more than 9,000 copies worldwide since it was first published in 2016. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Home Homepage Membership Levels General Discussion Complete Stock List Value Investing Forum Value Conference The book Podcast Membership Data Coverage Founder's Message Free Trial Quality Investing Owning The Best Companies For The Long Term. A bit too obvious at times. The Essays of Warren Buffett, Third Edition, How To Think Like Benjamin Graham and Invest Like Warren Buffett. This book is not yet featured on Listopia. Some interesting points around valuation: the risk of overpayment exists, but far less than you might think. Quality Investing sheds light on the investment philosophy, processes and tough lessons that have contributed to this consistent outperformance. Quoted Goethe: to think is easy, to act is hard, but the hardest thing in the world is to act in accordance with your thinking. Many of the principles discussed in the book will doubtless be familiar to students of investing, but it's nonetheless a good read due to its extensiveness and case studies. "Investing is a continuous process of learning, and it will be a rare investor who does not glean substantive lessons from the notable AKO story of quality investing." On a one year view, 80% of stock price moves are explained by changing multiples, however the long term driver of returns is earnings growth. Even though I enjoyed explaining the power of compounding with good quality companies. This document is intended solely for publication and distribution to the recipient and may not be passed on or disclosed to The book is a thorough checklist of the ingredients of investing in quality businesses, and provides a litany of examples to illustrate the various checklist items. There are few good investing books out there, and this is one of them. Key points to note. AKO, a London-based fund with $10 billion AUM, has achieved a return of more than double the market (9.4% per annum versus Europe?s 3.9%) since inception a decade ago. Perhaps a 4 our of 5 stars from me. Shame because overall premise is promising. Excellent overview of the "quality" (as opposed to "growth" or "value") style of investing. I picked this up because Dan Loeb recommended this book in one of Third Point's recent letters. Strong, predictable cash generation 2. Sustainably high returns on capital 3. Highly recommended. I thought that there wasn't anything new. “Quality Investing” is one of the growing number of books from Asset Managment firms where they outline their philosophy. We are long-term, patient and responsible investors, taking stakes in high quality, listed companies with outstanding managers. It also walks through some of the frameworks that Buffett and Munger have espoused over time, such as "Toll Roads" (companies that sell a product to a customer which comprises an immaterial portion of the customer's cost structure but is critical to its operations) and "Friendly middlemen" (companies that sell products through expert-salesmen such as opticians and plumbers that incentivize them to generate the highest margin on the company's own products). Finance, accounting, management, strategy, marketing, and psychology is mixed with the investing theme. Overall I enjoy it and learn something from it. It is closely related to value investing. English Literature Bachelors Degree. I have reviewed already 2 of them, “Capital Returns” from Marathon Asset Managament and “Simple but not easy” from Oldfield Partners. AKO Capital – Quality Investing: Owning The Best Companies For The Long Term . There are no discussion topics on this book yet. A book from practicians (AKO Capital) that spends their professional career investing in the highest quality companies. Vzniku firmy predchádzala dlhodobá úspešná spolupráca jej akcionárov na viacerých projektoch za posledných 10 rokov. Os autores de Quality Investing são do AKO Capital, fundo europeu que se destacou bastante nos últimos anos.E, segue uma filosofia de investimento focado em empresas de qualidade. Quality Investing is a short, sweet and engaging book that aims to institutionalise the lessons learned from refining AKO Capital’s quality-focussed investment philosophy. As at May 2020, our European long-short fund has compounded at more than twice … Quality investing involves seeking companies with the right attributes to overcome these forces of mean reversion and, crucially, owning these outstanding companies for the long term. In terms of avoiding the mean reversion of earnings and returns, companies able to deploy cash at consistently high returns on capital due to some sustainable competitive advantage are able to avoid this reversion. Perhaps a. The book details some of the tried and true sources of competitive advantage that help compound wealth over time. "Investing is a continuous process of learning, and it will be a rare investor who does not glean substantive lessons from the notable AKO story of quality investing." Quality Investing / AKO Capital. Pretty good. - Stephen Blyth, President and CEO, Harvard Management Company, Professor of the Practice of Statistics, Harvard University We’d love your help. Delves into those rare compounders and discuss the traits the exhibit. The concept of quality is familiar. This book addresses t… The books premise is based on hypothesis that there are some companies who are able to beat the theory of mean reversion. OC312612 24th September 2019 This document is STRICTLY PRIVATE AND CONFIDENTIAL. The book did not add a lot to that. Excellent read focused on the essentials of finding long term quality investments. It talks a lot about what makes a business great, how to identify great businesses ... etc, and spend a short chapter on why the market tend to under-value high quality companies. The authors are portfolio managers at AKO Capital, supported by Prof. Lawrence Cunningham, who has compiled Warren Buffett’s letters and written Berkshire Beyond Buffett.. According to AKO, 3 characteristics indicate quality: 1. But it reinforces the notion of quality over value, qualitative over quantitative. Quality Investing is a great guide for investing in wonderful companies for the long term.. The struggle, at least for me, is more about at what valuation does it start to make sense. with our author interviews, articles, and book lists! Three characteristics indicate quality: strong predictable cash generation, sustainably high returns on capital and attractive growth opportunities. People make judgments about it every day. The authors' firm, AKO Capital, has a strong track record of finding and investing in quality companies - helping it deliver a compound annual growth rate more than double that of the market since inception. “Quality Investing” is one of the growing number of books from Asset Managment firms where they outline their philosophy. Starts off with questioning what quality is and how focusing on great businesses that have a moat, strong brand, good management and execution can lead to continued value creation and prosperity. We have a rigorous, proprietary research-driven investment process. Quality. It's good and easy read book not wholly fulfilling. People make judgments about it every day. A fantastic book that would be a good companion to Greenwald's Competition Demystified. Throughout, a series of fascinating real-life case studies illustrate the traits that signify quality, as well as some that flatter to deceive.The authors' firm, AKO Capital, has a strong track record of finding and investing in quality companies - helping it deliver a compound annual growth rate more than double that of the market since inception. Lawrence Cunningham, who goes by Larry, has published many books, including: “companies that tie up very little extra working capital with incremental sales tend to be more attractive.”, “we are confident that the fundamental principle of long-term ownership of quality companies is a sensible one, new”, Curated Reads: Nonfiction Books to Intrigue and Inspire. QUALITY INVEST, a. s. je investičnou akciovou spoločnosťou. MARKET SHARE GAINS REPRESENT THE BEST PATHWAY TO GROWTH IF THEY HAPPEN IN A CONSISTENT WAY AND, IDEALLY, IN A MARKET WHERE THE INVESTOR CAN IDENTIFY A RELIABLE SHARE DONATOR. Quality Investing is a short, sweet and engaging book that aims to institutionalise the lessons learned from refining AKO Capital’s quality-focussed investment philosophy. Tries a bit too hard to fit in a very broad set of perspectives without providing sufficient, substantiated depth to be truly insightful. The "case studies" were lacking in my eyes, but the depth and breadth of the listed traits were excellent. To see what your friends thought of this book, Quality Investing: Owning the Best Companies for the Long Term, I picked this up because Dan Loeb recommended this book in one of Third Point's recent letters. Touches on many different aspects of how these companies will look, and how they will not look. The book did not add a lot to that. This book pinpoints and explains the characteristics that increase the probability of a company prospering over time - as well as those that hinder such chances. “Quality Investing” is about London based AKO Capital Management, a company with currently around 9 bn USD under management.