Added this new format with my favourite quote from each article. Enjoy!
“Investment firms are built on three key ingredients — opportunity, capital, and talent. Without good opportunities, nothing else matters. Even with high quality capital and the world’s most talented team, if you’re playing a highly competitive zero-sum game without a significant edge, your returns will likely revert to a declining mean, or worse.”Permanent Equity’s Annual Letter (2020), Brent Beshore
“In Asia, it’s not hard to find fast-growing companies given that economic growth here is high and many consumer and business needs are as yet unmet. However, it’s much harder to find companies which can withstand competition and keep the value of that growth for themselves. The best defences (with examples from our portfolio, which invests worldwide) are superior technology (Evolution Gaming and Microsoft), network effects (Alphabet, Facebook, Tencent, Alibaba and Mastercard), brands (Nintendo and Wuliangye) or lower costs (Domino’s Pizza Enterprises, HDFC Bank and HKTV Mall). In my opinion, the truly great businesses then go a step further by sharing their success with customers and partners, striving to always offer them more for less.”Long River Investment’s 2020 1H Letter, Graham Rhodes
“Better to look for an industry and country with tailwinds, a defensible business model and management with integrity; mix in an attractive valuation and some optionality; and let the rest take care of itself.”Long River Investment’s 2020 2H Letter, Graham Rhodes