Picking great companies for the long run

[Valuegrowth]

It was a very interesting and very useful reading for me. Thank you.

"About a quarter of companies don’t grow at all, and between 2010 and 2019, only one in eight achieved more than 10 percent revenue growth annually.

With only one in ten S&P 500 companies reporting growth above GDP for more than 30 years, sustained, profitable growth may seem difficult."

Great companies to invest in often have a large addressable market and leaders that plan for growth

"Growth begins with the core, however, growth leaders expand beyond the core to drive growth.

https://www.mckinsey.com/capabilitie...ders-blueprint

[Rawz]

Picking great companies for the long run.. you need to pick the companies with CEOs/management teams that are GREAT capital allocators, here are the top four on the NZX:

EBO
MFT
FPH
MHJ

[SailorRob]

Picking great companies for the long run.. you need to pick the companies with CEOs/management teams that are GREAT capital allocators, here are the top four on the NZX:

EBO
MFT
FPH
MHJ

Very true, many don't know/can't tell you who the capital allocator is within the company.

[Valuegrowth]

Some good choices. Thank you.

Picking great companies for the long run.. you need to pick the companies with CEOs/management teams that are GREAT capital allocators, here are the top four on the NZX:

EBO
MFT
FPH
MHJ

[JBmurc]

VG I am not a believer in diversification for investors over long time periods.
Over the last 40 years of investing I have participated in every listing then sold the "losser's" and added to what I think are the "winners"
There has been a noticeable lack of new listings over recent years.
My "share portfolio' has been pared back over time to 2 stock holdings(IFT & FPH) that I am relaxed that the next generation that knows squat all about investing can hold for the long term. Both of them have management that have long term horizons.
If I knew back then what I know now the "portfolio" could have another 2 companies(MFT & EBOS) that I rate very highly because their management have added a lot of value over the long term.
Over long time periods "Trading" for me is just a lot of wasted time and energy . Yes there maybe some "good traders" but is it worth it time & energy wise?
Isn't there other things you would rather be doing?
Maybe its fun to do for the thrill if it comes up a winner but how often does that happen?.
What companies shares do share owners trade?
Ones that have a volatile share prices?
But then why has it got a volatile share price?


https://rutherfordrede.co.nz/latest-...r-the-long-run
"Stocks For the Long Run" has some insight full ideas.

Nothing on the NZX

[kiora]

Picking great companies for the long run.. you need to pick the companies with CEOs/management teams that are GREAT capital allocators, here are the top four on the NZX:

EBO
MFT
FPH
MHJ

Why MHJ ?
https://www.marketscreener.com/quote...33/financials/
https://www.marketscreener.com/quote...IONA-29688133/

I picked MHJ up in the float but they didn't stay in the portfolio long.

[kiora]

Comparisons graphed 1995-2023
Doesn't include dividends
Allow it time to load fully
https://finance.yahoo.com/quote/%5EG...NoYXJ0In19fX0-

Picking companies companies for the long run should include succession risk. There are many companies with great long term returns but have they been through a succession change?
Many are still run by founders & are getting closer to succession risk. Have they planned for succession? Will it be seamless?
Why I rate IFT so much is they have been through the loss of the "founder" and continue to go from strength to strength.
RIP
https://en.wikipedia.org/wiki/Lloyd_Morrison

[Valuegrowth]

Very good point. In any place there should be effective and efficient leaders.
https://www.mindtools.com/a7m23wp/leadership-styles
https://www.techtello.com/effectiveness-vs-efficiency/

Picking companies companies for the long run should include succession risk. There are many companies with great long term returns but have they been through a succession change?
Many are still run by founders & are getting closer to succession risk. Have they planned for succession? Will it be seamless?
Why I rate IFT so much is they have been through the loss of the "founder" and continue to go from strength to strength.
RIP
https://en.wikipedia.org/wiki/Lloyd_Morrison

[mistaTea]

Picking companies companies for the long run should include succession risk. There are many companies with great long term returns but have they been through a succession change?
Many are still run by founders & are getting closer to succession risk. Have they planned for succession? Will it be seamless?
Why I rate IFT so much is they have been through the loss of the "founder" and continue to go from strength to strength.
RIP
https://en.wikipedia.org/wiki/Lloyd_Morrison

Yes very good point.

It’s why I also think Berkshire Hathaway is a great business to own.

[kiora]

Thanks VG. Yes it encapsulates a lot of what I'm getting at.
"Traders: like delving into Financial Accounts & "Indicators" to garner returns.

"Investors" for the long run need to be assessing the whole "ecosystem of the company". What is in the transcripts can be more important than what is reported in the Financial Accounts.
"Investment Logic Mapping"
https://www.treasury.govt.nz/informa...-logic-mapping
"What is mapping in trading?
What is Market Mapping? | Definition and Example | IG UK
Market mapping is a way for traders and investors to gauge the viability of a given trade or investment. Market mapping can be used to analyse different volatility levels and different prices for individual assets, or it can be used to analyse entire companies."