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Investing in Quality Businesses and Capital Allocation Strategies
The chapter delves into the importance of investing in quality businesses that maintain high standards over time, exploring concepts like business quality, acquisitions' impacts, and stock valuation. Using examples from companies like Lulu and Nike, the discussion covers multiples, earnings yield, and return on invested capital. Additionally, the chapter analyzes capital allocation strategies, share repurchases, and future growth prospects based on market conditions and historical performance.