Pocket-friendly framework to identify businesses for long-term investing -
- Total Addressable market
* Limited/Mammoth - Proven business model
* Profitable at the operating level
* Sufficient Net Cash generation from operations to self-sustain future growth initiatives
* Differentiation that will continue to attract customers and ambush competitors - Scalable
* Products
* Geography - Customer Pain
* Need/Aspirational | Repeat/One-Time
* Wallet Share
* Alternatives - Quality of Promoter/Management
* Incentives Alignment - Stake, Reputation
* Communication during difficult times
* Capital Allocation
* Rewarding all stakeholders - Expected steady state Return on Equity
* Levers to achieve the same if suppressed today
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