America's Car-Mart: A Get-Rich-Slow Compounder

Investment Philosophy - True value is derived from growth, not from undervalued assets (cigar butts) [1] - Long-term perspective is crucial for evaluating investments [1] - Great businesses offer significant societal value and are highly durable [1] - Companies with products and services 10x better than competitors deserve to grow 10x and maintain dominance [1] - Key characteristics sought in businesses include selection, convenience, and value [1] - Durability acts as a multiplier of value, with a preference for non-cyclical businesses [1] - Businesses capable of continuously outperforming competitors through product and service innovation are favored [1] - Anti-fragile business structures and complex operations are preferred [1] - The ability of a business to recover from adversity (macro and micro) is a key test of its strength [1] - Uniqueness is the primary driver of value [1] - Low maintenance costs for existing business operations provide high leverage for reinvestment and growth [1] - Minimal marketing expenditure is preferred [1] - Trust and network effects are important indicators of durability [1] - Management alignment with business interests and focus is critical, with a preference for seasoned CEOs, founders, and family businesses [1] - Good businesses empower people and attract talent, with managers who are continuous learners [1] - The success of Amazon demonstrates that customer focus can yield extraordinary returns for investors [1] - Win-win-win situations, where a true ecosystem is built, are highly valued [1] - Share buybacks are recommended when a durable business is identified [1] - The best time to invest is when all bad news is already known, and companies are not chasing talent [1] - Investments are made with the intention to buy more if prices decline [1] - Price actions are based on expectations and surprises, with a focus on companies where negative factors are priced in but positive factors are underestimated [1]