Last week we began this series with a review of the first two of eight factors of successful businesses. 1) Management are owners/founders or otherwise act as if they are. 2) High returns on capital will often dispense with the need for high debt. Today we move on to Part 2 with an analysis of factors #3 and #4. Factor #3 is that the company reinvests profits, rather than perpetually raising new equity. Factor #4 is stable management who often promote from within. Companies discussed include Technology One, Sirtex, Domino’s Pizza, and Flexigroup.