TIP526: Quality Investing: Lessons from Terry Smith
We Study Billionaires - The Investor’s Podcast Network
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Quality Companies Defy Mean Reversion
- High-quality companies often defy the economic theory of mean reversion, which suggests high returns attract competition, reducing profits over time.
- These companies possess defenses, often called "moats," that protect them from competition.
- Every company faces challenges, but successful long-term investments focus on those in growing markets with limited competition.
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