The average annual amount of capitalized expenditures that the business requires to fully maintain its long-term competitive position and its unit volume… must be a guess — and one sometimes very difficult to make. — Warren Buffett, Berkshire Hathaway shareholder letter, 1986 Download the Slides Deck: Capital_Longevity_and_Reinvestment Listen to the deep-dive discussion – Why…
Month: August 2026
How Much of the Spending Actually Compounds : We Went Looking for Hidden Capital. We Found Something Else.
Thus our first lesson: businesses logically are worth far more than net tangible assets when they can be expected to produce earnings on such assets considerably in excess of market rates of return. The capitalized value of this excess return is economic Goodwill. — Warren Buffett, Berkshire Hathaway shareholder letter, 1983 Download the Slides…
Why Every Compounder Reaches a Crossroads – What Success Does to a Business
If something cannot go on forever, it will stop. — Herbert Stein, former Chairman, U.S. Council of Economic Advisers Download the Slides Deck: The_Compounder_Crossroads Listen to the deep-dive discussion – The internal physics of business compounding I. The Same Label on Different Businesses Coca-Cola and PepsiCo sell drinks to the same world, ride…
The Stock You Can Sleep On: The Toll Whose Growth Is Free — and Asks No Decision
“I have to be able to sleep at night. It has to be sufficiently obvious… because what kills you as an investor is permanent loss of capital.” — Sir Chris Hohn, TCI Fund Management Download the Slides Deck: THE_FREESURFER Listen to the deep-dive discussion –How Freesurfer stocks capture free growth I. The Investor…