📖Jeremy Grantham
Quality Business Criteria
Quality businesses compound wealth and reduce risk.
Invest in businesses with durable competitive advantages, strong cash flows, and management integrity. Quality businesses compound wealth over time and reduce downside risk.
🏠 Everyday Analogy
📖 Core Interpretation
Jeremy Grantham emphasizes durable business quality over short-term noise. A strong model, real competitive edge, and disciplined capital allocation matter more than quarterly excitement.
💎 Key Insight：Durable advantages and good management create superior returns.
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❓ Why It Matters
Without business-quality filters, investors drift toward stories rather than economics. Durable cash generation is what supports long-term valuation.
🎯 How to Practice
Use a checklist covering moat, management, unit economics, and capital allocation; track long-term cash generation instead of quarter-to-quarter noise.
⚠️ Common Pitfalls
Buying narratives instead of cash-generating economics
Overreacting to short-term operating noise
Ignoring management quality and capital allocation
📚 Case Studies
1
Oil and Commodity Spike (2008)
Global demand, limited supply, and speculation drove oil above $140 and broad commodities sharply higher, echoing Grantham’s warnings on finite resources.
✨ Outcome：Investors in energy and resources benefited near‑term; subsequent crash hurt late entrants but reinforced long‑run scarcity thesis.
2
Agricultural Commodity Tightness (2011)
Extreme weather, rising emerging‑market diets, and constrained arable land triggered sharp rises in grain and food prices, consistent with Grantham’s resource‑scarcity framework.
✨ Outcome：Ag, fertilizer, and farmland investments outperformed; volatility later normalized, but structural pressure on food systems remained evident to long‑term investors.
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