The six good things that happen to great businesses

Intelligent Investor

Independent Financial Research

The six good things that happen to great businesses. 1. Great businesses foster solid reputations. Whilst a 'good name' seems an intangible quality, it offers very real benefits. Reputation open doors. Companies are better able to raise equity when they're proven performers and lenders are more willing to extend debt finance. 2. Great businesses maintain strong balance sheets. Maintaining a conservative balance sheet helps cushion industry downturns. 3. Great businesses benefit from 'multiple arbitrage'. This occurs when earnings are acquired at a lower multiple than the acquirer's shares and the market is willing to rerate the acquired earnings to the higher multiple. Read the last three here: (VIEW LINK)


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Intelligent Investor
Independent Financial Research

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