Insights on Wealth Creation Strategies and DNA of Success

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Explore key factors for wealth creation, including management quality, market positioning, growth potential, and more. Unveil the DNA of both wealth creators and destroyers, along with the forces driving wealth creation. Discover essential principles for sustainable success in the world of finance.


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  1. MOSL Wealth Creation Study Summary Subash Nayak http://art-of-mental-modelling.blogspot.in/

  2. Outstanding management Unquestionable Integrity Focused on core business First generation entrepreneur Favorable Tailwind Huge size of Opportunity ROE/ROCE > 20% Growth > 25% Management Quality Macro Wealth Creation Valuation Business Not in commodity business Non cyclical High entry barrier business Leadership market position (1st or 2nd) Low capital Intensity PEG < 1 Payback ratio < 1

  3. DNA of an Wealth Creator - 1 Business o o o o Management o Outstanding management o Unquestionable Integrity o Focused on core business o First generation entrepreneur Not in commodity business Non cyclical High entry barrier business Leadership market position (1st or 2nd) Low capital Intensity o Macro o Favorable Tailwind o Huge size of Opportunity Valuation o PEG < 1 o Payback ratio < 2 Size High ROE/ROCE Sustained earning growth (>25%) o Preferably Midcap

  4. DNA of an Wealth Destroyer Commodity Business Manufacturing of intermediate products Low ROE

  5. DNA of an Wealth Creator - snippets 1999 2000

  6. DNA of an Wealth Creator - snippets 2004 2004

  7. DNA of an Wealth Creator - snippets 2005 2006

  8. DNA of an Wealth Creator - snippets 2007 2008 2010 2009

  9. DNA of an Wealth Creator - snippets 2010 2012

  10. 5 forces of Wealth Creation 1. High ROE 2. Increasing CE 3. Growth 4. Cost of Capital 5. Margin of Safety

  11. 3 Component of Value

  12. Valuation and Growth Non cyclical Secular Growth Consistency of Growth How much capital needed for Growth Longevity of Earning Valuation Profitable Growth (FCF gen capability) Sustainability of Growth

  13. Deconstructing ROE

  14. Great, Good, Gruesome

  15. Great, Good, Gruesome

  16. Winning Investment Winning Investment o Winner Category Sector growing 1.5x of GDP o Category Winner Moat + Growth + Management o Reasonable Valuation

  17. Uncommon Profit

  18. Uncommon Profit

  19. Uncommon Profit

  20. SQGLP Framework

  21. Quality of Management

  22. Growth vs Quality

  23. Commodity Investing

  24. Phases of Commodity Cycle

  25. Commodity Investing

  26. Commodity Investing

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