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Focus on Durability of Franchise Over Short-Term Growth
When evaluating potential investments, it is crucial to focus on the durability of the franchise rather than short-term growth prospects. This approach ensures a clear understanding of the question the investment is trying to answer, which in turn guides the diligence process towards assessing the long-term sustainability of the business. By prioritizing the stability and longevity of the franchise, investors can mitigate risks and make informed decisions about the businesses they choose to pursue.