I am reading through Nothing but Net by Mark Mahaney at the moment and it makes for interesting reading.
What I have been trawling for in companies is Growth Curve Initiatives (GCI’s) from page 102 in this book.
It lays out in simple what I have been looking to find in a company, what have they invested in that will ensure top line revenue keeps growing? When this has been found, if the management team have a track record of achieving growth based on investment then it is potentially a good growth indicator over time.
Author uses examples of Netflix expanding into regional markets by investing in content for each region and price increase initiatives that have not decreased subscribers.
Where I have been looking is more an investment that will grow revenue. For the companies I have found, it is more new plants/facilities to make and distribute more product, increasing revenues.
If you apply to the GQG portfolio, it has been the beneficiary of Adani and Nvidia where large investment is being undertaken on India’s infrastructure (Adani) and large AI investments (Nvidia) have started to pay off. I am sure there are others, but these give a good indication of what to hold for long periods of time.
