📖William Gann
Industry Structure Analysis
Industry structure shapes investment outcomes.
Understand the industry structure before evaluating any company. Industry economics often matter more than company-specific factors in determining returns.
🏠 Everyday Analogy
📖 Core Interpretation
W.D. Gann 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：Industry economics often matter more than company specifics.
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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
Railroad Stock Forecast (1909)
Gann reportedly applied Gann Angles to predict turning points in several railroad stocks, including Union Pacific, correctly forecasting price reversals based on angle support and resistance from key swing lows.
✨ Outcome：Executed multiple short-term trades with favorable risk-reward, compounding returns over several months.
2
Black Monday Crash Setup (1987)
An analyst applied the Square of Nine to the S&P 500, noting geometric resistance and time cycles converging in late summer 1987, warning of a sharp correction before Black Monday.
✨ Outcome：Exited index positions in advance and re-entered gradually after the crash at lower prices.
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