Cunningham advises investors to seek key qualities in businesses that can withstand the test of time and fend off competition. He points out that Warren Buffett mastered this approach, becoming one of the richest men in the world by consistently applying this long-term strategy.
He says three things indicate the quality of a business: strong and predictable cash generation, sustainably high returns on capital and attractive growth opportunities.
Two common mistakes in investing:
1. Those made when buying and
2. Those made when deciding to continue to hold, instead of selling, a stock.
