Quality Investing: Owning the best companies for the long term

Excelente livro, recomendo!

REGALO

Absolutely loved it. This book really helps in understanding the traits of Quality Companies. Fresh ideas which are explained in an amazing way. Books by Harriman House are so damn delicious for the Inquisitive brain!

Quality investing consist of selecting ‘the specific traits, aptitudes and patterns that increases the probability of a particular company prospering over time -- as well as those that decrease such chances,’ according to the authors (p.2). It is notably the combination of predictable cash generation, sustainable high return on capital, and attractive growth opportunities. The book covers all these aspects of quality investing from an expert point of view, but in accessible language. It provides definitions of terms and shows examples of quality companies (as well as those that aren't). Twenty-two case studies also examine companies in more detail. The book covers the pitfalls and portfolio implementation of quality investing at the end of the book. Investors can use the criteria in this book to improve their stock-picking checklist. It would be great to have in a future edition an annex with a list of criteria and parameters to analyse quality companies.

Enjoyed reading about how AKO define quality and some of the things to avoid (or seek out in the case of shorts!) The authors provide good examples of a variety of types of businesses with strong economic moats in sometimes atypical ways. Not sure that I agree that quality is worth any price, but can see their point on how the market misses the lack of operational volatility and the ability to reinvest cash flow in productive ways.