Wonderful Business
Warren Buffetts term for a company with durable competitive advantages, high returns on incremental capital, and a long runway to reinvest those returns at attractive rates. The wonderful-business framework is the centerpiece of the Buffett-Munger evolution away from Grahams pure cigar-butt approach, and the structural insight is that long-run after-tax compounding inside a high-quality business mathematically dominates repeated turnover of fair businesses at great prices for an investor with permanent capital and a long horizon.
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Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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