“Quality is underappreciated. It cannot be modeled in Excel, it’s not on the balance sheet, nor does it make for an exciting investment pitch. Quality is not easy to pin down, because it often represents new ways of doing things that stretch or break old mental models. Investment ideas based on quality can be difficult for investment organizations to implement because deep appreciation of and conviction in quality is difficult to convey from one person to another. It seems common for quality to be dismissed in favor of so-called “structural” advantages—things like a brand or a switching cost. These are important, too, but the more I have seen, the more I’m convinced that the difference between great and merely good is qualitative.” —Josh Tarasoff
Links - 7/6/2021
Links - 7/6/2021
Links - 7/6/2021
“Quality is underappreciated. It cannot be modeled in Excel, it’s not on the balance sheet, nor does it make for an exciting investment pitch. Quality is not easy to pin down, because it often represents new ways of doing things that stretch or break old mental models. Investment ideas based on quality can be difficult for investment organizations to implement because deep appreciation of and conviction in quality is difficult to convey from one person to another. It seems common for quality to be dismissed in favor of so-called “structural” advantages—things like a brand or a switching cost. These are important, too, but the more I have seen, the more I’m convinced that the difference between great and merely good is qualitative.” —Josh Tarasoff