On the Hunt for Great Companies: An Investor's Guide to Evaluating Business Quality and Durability

by Simon Kold

Essential investment guide to perform sophisticated practical analysis on long-term business quality

An unparalleled practical training tool for investment analysis, On the Hunt for Great An Investor's Guide to Evaluating Business Quality and Durability helps readers move beyond using rules of thumb for companies or investment hypotheses based on broad-level pattern recognition and instead start using a more thorough approach through sophisticated empirical analysis. Readers will learn how to assess all the essential traits of a good business, including passionate management, staying power, abnormal reinvestment options, low dependency risk, and to identify emerging quality. 

This book is supported by a wealth of real-world examples, both contemporary and historical, detailed original illustrations, and true business stories and anecdotes from investor and former comedian Simon Kold. In this book, readers will learn

Elements of intense and durable competitive advantage such as scale economies, switching costs, network effects, brands, proprietary resources, and modest value extraction Methods to formulate falsifiable test statements and empirically test those predictions, rather than relying on heuristics or box-checking Incorporates memorable investment advice through Kold’s trademark humorous style Detailed, sophisticated, and highly actionable, On the Hunt for Great Companies is an essential for professional investors of all sizes, in all industries, in both public and private markets.

Genres: Finance, Business

336 pages, Hardcover

Published October 29, 2024

Reviews

[DW]

A few useful tips on how to deep dive on very specific parts of competitive advantage or disadvantage. Research approaches I never would have thought of that felt very 'insider knowledge'. Thank you, dear author!

The sections for these deep dive tips had a cartoon shiba inu with its nose to the ground saying LET'S SNIFF AROUND. They happened every few pages and were either highly useful or not, but it was such a major part of the book that the actual title of the book is LET'S SNIFF AROUND. This was very endearing.

To break up the book, the author would often create light, fictitious stories at the start of each chapter that made me doubt his sanity due to both style and delivery.

The author's attempts at humour physically hurt me.

[Steffen Jørgensen · Rating 5 out of 5]

A very unique and humoristic book about how to analyze a business and how to spot emerging qualities. I have read tons of investing and business books and this is one of the very few books out there that combines a great insight into competitive analysis while also providing a research framework that the investor can apply or use to improve his or her own due diligence process.

[Mads Horsted · Rating 5 out of 5]

Excellent book with high real-world investing application and analyses. Should be a top pick for any aspiring equity or hedge fund analyst!!

[Torean Vance · Rating 4 out of 5]

Good framework for business quality. Lacking compelling case studies but does benefit from clear thinking on the 7 powers framework and where to look for more subtle business power.

[Jose Antonio La Rosa · Rating 5 out of 5]

Truly Awesome!!!

Fun, easy to read, pragmatic!!!

Highly valuable book for all investors: new and old.

Thank you very much Simo for writing this awesome book!!!

[Rahul Mahindru · Rating 4 out of 5]

Good explanation on how to measure business quality / competitive strengths.

[Kenny Schwarz · Rating 3 out of 5]

I read this book on audible, which is a method I dint recommend for this one. The material is too dry and cense to hold focus for long without wandering. When I did pay attention, I found that there are some good nuggets in here. However it’s clear that the book is not necessarily for the casual investor, as following all the steps single handedly would become overwhelming for one’s schedule. Perhaps this book would be most useful in an investment club situation, where some of the research could be doled out appropriately. In either case, I have a feeling I’ll need to go through this book again to fully digest it.

[Johan · Rating 5 out of 5]

Great book that makes you think in a more structural way, even though a company can't fit all criterias it makes you evaluate the positives and negatives. Also liked the idea of finding emerging quality companies.