Excellent framework! After having been burnt on a cyclical company I regard avery company as "in a cycle". Instead of asking, is this company cyclical, I changed it to: "How cyclical is this company?".
thanks for the comment Kevin! that's an interesting perspective, shifting the mindset to assess the degree of cyclicality, rather than simply classifying companies as cyclical or non-cyclical, could definitely help avoid being caught off guard by unexpected downturns. No company exists in isolation!
Excellent read Polymath, thank you! I actively look at companies with counter-cyclical properties. If I can add is that I find it very telling when companies go through tough times. I believe it's the best time to see the true worth of a company. How management response to challenges, their plans, their execution, their relationship with customers and suppliers, these things tell me if they are really what they say on the tin -- investor presentation. Sea Limited, MIPS and CrowdStrike come to mind as recent examples on my investment universe.
Thanks, Trung! Well put, I definitely agree. Besides management execution I also like to look at moat durability. For me, there's no better test of a moat than when it's directly attacked by a competitor and survives. Think Facebook back in the day when Google+ was launched and leveraged across all Google properties...
Excellent framework! After having been burnt on a cyclical company I regard avery company as "in a cycle". Instead of asking, is this company cyclical, I changed it to: "How cyclical is this company?".
thanks for the comment Kevin! that's an interesting perspective, shifting the mindset to assess the degree of cyclicality, rather than simply classifying companies as cyclical or non-cyclical, could definitely help avoid being caught off guard by unexpected downturns. No company exists in isolation!
Excellent read Polymath, thank you! I actively look at companies with counter-cyclical properties. If I can add is that I find it very telling when companies go through tough times. I believe it's the best time to see the true worth of a company. How management response to challenges, their plans, their execution, their relationship with customers and suppliers, these things tell me if they are really what they say on the tin -- investor presentation. Sea Limited, MIPS and CrowdStrike come to mind as recent examples on my investment universe.
Thanks, Trung! Well put, I definitely agree. Besides management execution I also like to look at moat durability. For me, there's no better test of a moat than when it's directly attacked by a competitor and survives. Think Facebook back in the day when Google+ was launched and leveraged across all Google properties...