Most investors can name Buffett or Terry Smith. But a quieter elite of “quality purists” has been compounding capital far from the spotlight — from Montréal to Hong Kong, from Zurich to London. They buy great businesses, hold them for years, and let time do the heavy lifting.
Cash may look simple, but valuing it rarely is. A dollar on the balance sheet can trade at a premium—or a discount—depending on how management is likely to use it. Academic research shows that the worth of “excess” cash hinges less on accounting than on trust.
Corporate culture is notoriously hard to measure, yet it may be the single most important driver of long-term corporate success.
Dual-class share structures have become the favorite shield of modern founders—and the headache of modern investors. By separating control from ownership, they let visionaries steer without interference but also weaken accountability as companies mature.
CFOs are seizing the corner office as boards prize financial discipline over vision. But do number-crunchers make great leaders—or just careful caretakers? The answer reveals how today’s corporate cycle rewards prudence, and what it risks losing when finance eclipses imagination.
When governance breaks, it rarely does so loudly. The warning signs—entrenched control, self-rewarding pay, pliant boards, related-party shadows, and opaque numbers—start as footnotes and end as fiascos. The market often shrugs until the damage is irreparable.
The academic record has been telling a consistent story for two decades: stronger shareholder rights are associated with higher valuations and better long-run performance.
They look like harmless housekeeping—leases, loans, “commercial terms.” But when the CEO’s friends and family are on the other side of the deal, value walks out the door. Here’s how to spot the smoke before your multiple catches fire.
Capitalizing development lifts EBITDA and cash optics; expensing drags today but clarifies economics. Rebuild both views to test whether the moat holds without accounting gloss.
EVA, in Plain English: The Profit Left After Capital Gets Paid
ChatGPT: Two decades after Enron, Sarbanes-Oxley still divides boardrooms: compliance isn’t cheap, especially for smaller firms, but sturdier audits and investor trust may justify the bill.
Joint ventures can unlock reach and know-how, but misaligned incentives and divided control mean many falter before creating lasting value.
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