📖William Gann
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
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：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
Staying Calm in Black Monday (1987)
A disciplined investor withstands the October 1987 crash, having followed Gann-style risk rules and avoided over‑leveraged positions.
✨ Outcome：By not selling into panic and selectively adding to strong names, the portfolio recovers within about two years and reaches new highs.
2
Pre‑Crash Market Peaks (1929)
Using Gann’s time cycles and 20-year repetition, an investor noted a major top forming in 1929, echoing 1909–1910 behavior.
✨ Outcome：Reduced equity exposure before the October crash, preserving capital and later buying quality stocks at deep discounts.
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