Geoff Gannon from Focused Compounding has highlighted these to be his defense-in-depth approach when it comes to evaluating a potential investment: Price: 2/3 or less than the average company in that industryIndustry: better than most industriesManagement: better than most management teamsPosition in the industry: better company and above average in this industry Some industries included in the discussion were: Advertising AgenciesBanks The best companies Geoff had found were what he called poorly-run business in an above-average industry.